It seems that the grey divorce is on the rise. According to a post on CNBC.com, 1 in every 4 divorces is from a couple over 50. I find that amazing.
Divorcing moments before retirement can be a dangerous proposition. I have seem many of my over-50 clients finding themselves in serious trouble. They often don’t realize that the community property portion of the retirement is cut in half in California. Nearly 100% of my clients lose money in the divorce. Dividing assets and no longer pooling resources can make for some serious budgetary heartburn. Younger couples can bounce back pretty well, but I often worry for the older couple. There just isn’t enough time to rebuild the nest egg. If one spouse stayed home to take care of kids and never reentered the workforce, there simply isn’t enough time to rebuild new job skills and earn sufficiently to save for retirement in such a short time. Support payers are often faced with the prospect of alimony payments for the rest of their lives.
This article on CNBC.com by Ilana Polyak does a good job of laying it out: http://www.cnbc.com/id/102083712
Let me know what you think? What thoughts or ideas do you have for older couples facing a divorce?