Safeguarding your retirement in a grey divorce

On Behalf of | May 22, 2023 | Divorce

Retirement is an inevitable topic of discussion for any divorcing couple exiting a long-term marriage. You work for many years to build up your retirement savings, so it can cause no small amount of stress to realize that a divorce can throw a wrench in your plans.

The topic of retirement is likely to be of particular significance for older couples undergoing a grey divorce. If you are going through a split with retirement looming just over the horizon, it is especially important for you to understand how divorce will affect your retirement plans and what you can do to safeguard them.

How can divorce affect your retirement?

The most potentially-contentious aspect of many divorces is the separation of property, which applies to retirement contributions made during the course of the marriage as well. If you made significantly more retirement contributions than your spouse, you might find yourself walking away from the marriage with fewer retirement assets than you started.

How can you protect your retirement in a grey divorce?

It is likely that both you and your soon-to-be ex-spouse wish to enjoy a comfortable and dignified retirement. To that end, consider the possibility of working together with your spouse to plan your retirement finances ahead of time despite your impending divorce. You might also choose to work with a professional mediator who can help you arrive at a compromise regarding the most sensitive asset division and retirement planning issues surrounding your divorce.

Keeping in mind that grey divorce typically refers to splits between individuals in their 50s or older, it is often the case that retirement plans meet with disruption with little time to recover. Reaching a solution through cooperation, compromise and mediation can ensure that both sides are able to enjoy their golden years even after a divorce.