By now, most people have heard of the phenomenon popularly referred to as grey divorce, in which Americans over the age of 50 are choosing to end marriages of 20 years or more. Here in Connecticut, residents going through grey divorce may feel overwhelmed by such a monumental change right before retirement. Thankfully, there are strategies for handling the issues unique to grey divorce that most people will encounter.
For many people, planning for retirement in a marriage is a decades-long process that can be upset by a divorce. This is why addressing issues like power of attorney and benefit recipients should be at the top of the list for most people. Reassigning these benefits, addressing 401(k) accounts and so on means determining how these joint assets will be divided after the divorce.
Additionally, many people planning to retire as a couple may be blindsided by a sudden halving of their assumed savings. Thankfully, many states offer measures designed to allow individuals over 50 to catch up and contribute more to their savings than younger people are allowed. Seeking out more information on these sorts of options is part of the first steps in preparing for a grey divorce.
Divorce late in life can be a surprise, or it can be years in the making. Either way, Connecticut residents approaching grey divorce can benefit from reaching out for support around them. From financial planning to understanding the complexities of divorce law, many options are available to support divorcing couples no matter how young or old they might be.
Source: Forbes, "Easing The Financial Impact Of Divorce In Retirement", Juliette Fairley, Jan. 22, 2016