A growing number of baby boomers are filing for divorce, according to a recent story by Fox Business. The story cited numbers from a pair of sociologists at Bowling Green State University who found that in 2009, one in four divorces in the United States were among baby boomers. That’s a figure that has risen from one in 10 divorces back in 1990.
And while divorce is a challenge at any age, it can be an especially difficult experience for boomers. That’s because older couples face more complex financial issues when divorcing thanks to the larger role played by retirement funds.
The Fox Business story quotes a financial adviser who says that everyone who gets divorced experiences some degree of financial difficulty, a reality that holds especially true for divorcing baby boomers.
Boomers who are going through a divorce need to work with mediators, lawyers and financial planners, say the experts quoted in the Fox Business story. The reason? That’s the best way to craft a settlement that is fair for both parties from both a tax and retirement perspective.
The Fox Business story advises older couples who are divorcing to create financial plans that clearly outline their retirement assets. This will give them a better idea of when they will be able to retire. It might also provide divorcing boomers with the inspiration they need to cut back on expenses, work longer hours or adjust their retirement plans.
At the same time, it advises divorcing baby boomers to set realistic budgets. A budget, unlike a financial plan, is focused more on the short-term. A good budget should tell boomers exactly how much money they have coming into their home every month and how much they need to spend.
Stay tuned for more from our Ft. Worth family law blog …
To learn more about dissolution of marriage, property division or other divorce-related issues, contact an experienced and skilled legal professional.
This post is for informational purposes only and is not to be construed as legal or financial advice.
Fox Business, “Graying Divorces: What Boomers Need to Know to Protect Their Assets,” Andrea Murad, May 25, 2012