Divorce can be a confusing and complicated process for any couple living in Stillwater, Minnesota. However, determining how your divorce settlement will shape up as couples edge toward retirement is a consideration frequently left unanswered. Including a financial plan for retirement in a settlement is increasingly important, considering the divorce rate among people between 48 and 66 years old has been climbing steadily over the last two decades.
As couples divide their financial holdings during divorce, there is potential for emotions and conflicts to build. However, by seeking knowledgeable advice, planning ahead and trying to cooperate with your spouse, the process can be made a lot easier. As couples decide to divorce, it is a good idea to come together and try to work out a fair settlement, or at least come to some agreement how they will receive financial advice. Couples can be put in a precarious situation when they individually receive pertinent financial direction from the same person.
This is especially important for couples who have taken the time to plan ahead for retirement by building assets to draw from later in life. The problem is that so few couples consider the possibility of being single at or near retirement age.
Being on a fixed income is a fact of life for many older Minnesotans, and divorcing at an older age can complicate any existing retirement planning. The important thing to remember is that a person's expectations should change in the wake of divorce. Couples face the likelihood of seeing their marital assets being split in half during divorce, so it's important to handle personal finances with the knowledge that life will be different after divorce. Above all, support and smart planning can ease the transition into a comfortable lifestyle after divorce.
Source: Reuters, "As couples split, advisers face minefields," Jessica Toonkel, March 12, 2012
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