If you are getting divorced and are over the age of 50, then you are not alone. Late-life divorces are actually on the rise in the country and in Illinois. According to The Fiscal Times, a divorce later in life can bring some major concerns about retirement because it changes all expectations of what would happen in retirement. You were likely planning on having the full amount of any money set aside for retirement, but retirement accounts are often split between both of you in the settlement. This requires some adjustments.
It is advisable to consider the impact on retirement before the divorce is finalized. This way, you can work things into your divorce agreement that can be helpful. For example, you may find that selling your home is the best way for you both to be able to afford your expenses after everything is final. By selling it as part of the proceedings, you will save on the capital gains tax that you would otherwise have to pay. In addition, it can be helpful to pay off debt as part of the divorce settlement.
Not having enough money is the biggest concern for a late in life divorce. This is especially true if one of you has never worked. In that case, the working spouse will usually have to pay spousal support or alimony. This could prolong the length of time this spouse continues to work. The divorce could force one or both of you to have to change your retirement plans in order to afford everyday expenses. This information is only intended to educate and should not be interpreted as legal advice.