Getting divorced at any time of life can be financially straining, but especially for those who are over the age of 50. The financial implications of a gray divorce can be long reaching when it comes to retirement. However, this should not prevent anyone in North Carolina from seeking a necessary divorce, but should instead highlight the need to be aware of one’s financial situation when ending a marriage.
Gray divorce is on the rise
The divorce rate for couples over the age of 50 was sitting at less than 10% just one generation ago. Now, gray divorce rates are closer to 25% as married couples are ending things after 20 or even 30 years together. While there are many social factors that contribute to this rise, many men and women want to enjoy their retirements without the burden of an unhappy marriage.
Enjoying that retirement hinges on one’s ability to cover essential costs. If someone who is near retirement divorces and goes from a two–income household to just a single income, his or her retirement contributions might be smaller than in the past. A divorcee who is already in retirement might struggle to cover living expenses with just a portion of the funds previously saved up during marriage.
Being prepared to address retirement funds during property division is an essential step. This often means gathering important financial documents to get a better understanding of one’s whole financial situation. Documents to be on the lookout for include:
- Tax returns
- Retirement account statements
- Bank account statements
- Insurance policies
Getting divorced is just as much an emotional process as it is a legal one, and concerns for one’s finances during retirement are valid. However, it can be complicated to address some of these worries, especially for those who are not familiar with North Carolina family law. Taking the time to learn more about gray divorce, property division and other aspects of family law can prove to be exceptionally helpful.
