At the start of the marriage, most Michigan couples assume that they will live happily ever after. However, as these same couples raise their families and spend their time planning for their future retirement, they begin to realize that their version of happily ever after may not include a future with their current spouse. As couples approach retirement age, the decisions to divorce can have a lasting impact on their financial future. With this in mind, consulting with an experienced family law attorney is often in the individual’s best interest.
Research indicates that divorce among couples over the age of 50 is on the rise. In fact, this number has almost doubled in the past 20 years. Additionally, divorce among those over the age of 65 has almost tripled during the same time period. A significant number of older couples are deciding that growing old alone is preferable to remaining in an unhappy marriage.
Financial concerns are a primary consideration when considering divorce as one approaches retirement age. While it may appear that the couple has significant assets, these assets will now need to be divided and used to fund two households rather than one. The majority of these assets are likely held in the form of retirement accounts and pension plans. How these assets are divided can have a significant impact upon each individual’s financial future.
Property division plays a vital role in the majority of family law matters. As the Michigan couple considers divorce, how these various assets will be divided is an important consideration. An experienced attorney can guide the individual in making sure that each item is considered and properly transferred to minimize taxes and penalties.
Source: The Washington Post, “A ‘gray divorce’ can devastate your retirement plans. Here’s how.“, Michelle Singletary, March 26, 2018