A late-in-life divorce often affects couples in their 60s. For instance, gray divorce has become more common, and the divorce rate has tripled for couples over 65. But for couples over 45 in general, the rate has also been increasing, although not as dramatically.
This certainly can affect a couple’s retirement plans. They may have spent decades saving for retirement together. One spouse may have been anticipating using retirement benefits that were earned by their partner. Their retirement plans are set, and it feels like it is right around the corner.
A divorce can call all of this planning into question. If it happens relatively late in life, when a couple is already in their 60s, there may be no time to independently save or plan for retirement. But there are still steps couples can take to protect the assets they need.
Using a qualified domestic relations order
For instance, when it comes to retirement accounts and retirement benefits provided by an employer, these often count as marital assets. Like income and other earnings, the benefits are being earned through that person’s employment.
As such, the portion of those benefits earned during the marriage may need to be divided between the couple, even though only one person is technically earning them as part of the benefits package at their job. The division can be handled by a qualified domestic relations order during the divorce, specifying what percentage of those future benefits will need to go to their ex-spouse once they do retire.
There are many financial concerns that come along with divorce, especially a gray divorce. It is critical that couples understand exactly what legal steps to take.
