James R. Schaffer, P.A.

How will a divorce impact your finances?

| Jul 25, 2019 | Divorce |

Many of our readers in the Tampa area know that a divorce can result in a significant impact on finances, for both spouses who go through the process. In fact, the financial aspect of a divorce is why many couples try very hard to work through their marriage issues. However, some people may not realize that the financial impact of a divorce can be greater for those who are older – the so-called “grey” divorces.

A recent report analyzed the impact of divorce on older Americans, specifically those who are age 63 or older. Nearly 27 percent of women over that age who went through a divorce later in life qualified as “poor” under the applicable criteria. For men, the percentage stood at just over 11 percent. In broader terms, the recent report noted that the divorce rate for Americans age 50 and over has doubled in the last thirty years or so.

So, why does a divorce have such a substantial impact on older couples as opposed to younger couples who divorce? Well, for the most part, it is due to the assets that an older couple, as opposed to a younger couple, has likely accumulated together over the years. Those assets can include retirement accounts with significant balances, investment accounts and real estate holdings, as just a few examples.

Unfortunately, some marriages are so far gone that a divorce becomes inevitable. Getting through the legal process may seem complicated, and it oftentimes is. However, with the right approach and the right legal information, even older Florida residents may be able to get through the process with less of a financial impact than they feared.