One age group demographic that financial planners, family law researchers and certainly experienced divorce lawyers are readily focused upon when it comes to the subject of divorce and retirement savings is the 50-plus crowd.
The reason for that is, of course, evident: Older individuals have less time than do comparative youngsters to ramp up savings to recoup financial losses. They are less likely to clock as much time in the workforce going forward, contribute as much in the future toward retirement earnings or polish up their resumes to forge new careers.
Given those constraints, many divorcing baby boomers likely feel a bit more — indeed, a lot more — pressure than younger separating couples to get the financial details right during divorce negotiations.
As a media topic focused on so-called “gray divorce” and retirement puts it, “it’s critically important to pay attention to how your retirement savings weathers the storm” if you’ve got only a few years left to retirement (or, indeed, if you’re already in your retirement years).
For many older divorcing couples, a strong spotlight obviously falls upon retirement accounts held by one of the soon-to-be former spouses, specifically those that are shielded from taxes as they accumulate earnings in employer-sponsored plans.
For many of our readers in Georgia and elsewhere, that might immediately trigger thoughts of a 401(k) plan. Other types of company plans typically include pensions, stock options and retirement payouts.
Those savings vehicles can often be an important lifeline for a divorcing spouse who would be economically disadvantaged without some legal claim to them following a marital dissolution.
There can be a number of age-specific and highly singular considerations attached to divorces featuring persons close to or starting retirement. A proven divorce attorney with knowledge concerning the financial dimensions of divorce for comparatively older persons can help a client identify them and employ a strategy during the divorce process that optimally promotes financial independence.