People in Kentucky who decide to divorce after 50 can experience some additional financial hardships and consequences due to the changes to major financial plans as people approach the end of their working years. When people make a decision to divorce later in life, this means that both partners have a limited opportunity to rebuild their finances after the separation of assets that accompanies a divorce. Retirement accounts that both parties are relying on to support them throughout their elder years will now need to support two separate households, potentially doubling the amount of expenses covered from the same pool of assets.
Despite the financial risks, the divorce rate for people in the United States over the age of 50 has doubled since the 1990s. This number is projected to be on a continued upswing, and it is even higher for people on their second or third marriages. Many accountants and financial experts advise both parties to take care of assets during a divorce in order to protect the maximum amount of retirement savings for the future.
One option can be a collaborative divorce in which the spouses and their lawyers collectively develop a negotiated agreement for the division of assets to benefit both parties and lower the court costs of the split. It can also be important to keep changes to the tax law in mind; in 2019, a new rule for alimony payments will go into place that could encourage a settlement. Social Security rules for benefits to former spouses can also be an important factor to consider.
For people dealing with a divorce at any time of life, the financial aspects can be some of the most challenging. A family law attorney may provide representation to protect a divorcing spouse’s assets and advocate for their rights in negotiations and in the courtroom.