When you get married, you hope and dream of growing old together. Unfortunately, sometimes when people grow old together, they drift apart. Silver divorce (divorces that occur after retirement) are becoming more and more prominent. Baby boomers, unlike their parents, don’t have the social stigma attached to divorce. Divorcing your partner doesn’t make you a pariah in the eyes of your peers anymore. Now people view divorce as a new chapter in finding happiness within, rather than attached to someone else. Divorcing after retirement can have some unique financial challenges to consider. Here are a few important things you need to know about splitting after retirement.
Retirement Splits 50/50
California is a community property state. That means that half of the assets that you have acquired throughout your marriage will be equally divided between you and your spouse. This includes your retirement. Only having half the amount of money to live on may require you to rethink your retirement budget.
When you have a marriage of long duration, you may be required to pay spousal support for a long time. The purpose of spousal support is to help keep your spouse at the same standard of living established through the marriage until they can get back on their feet. However, when you are passed retirement age, it may not be possible for your spouse to work. While the court rarely orders spousal support for life, it could happen depending on your age and length of marriage. This is something to discuss thoroughly before your divorce.
Divorce and Your Grown Children
Even though your kids are grown and not living with you or your spouse, divorce can still be devastating to your family. Sit down and speak with them regarding your decision. They will likely appreciate your openness and willing to discuss your reasoning and how you and your spouse plan on moving forward.
There are many financial and emotional considerations when you divorce after retirement. Instead of fighting it out in court, consider the low-conflict alternative of mediation. Call SDFMC today at (858) 736-2411 to discuss your silver divorce.