In recent months we’ve talked about “grey divorce,” or the growing number of older adults choosing to end their marriages. Over the past twenty years, the divorce rate among baby boomers has doubled, with about one in four boomer marriages ending in divorce.
Many couples of this age are deciding to part ways after their children leave the house. In some cases, parents may stay together while their children are living at home. But after the children move on, parents may be ready to move on and start living their own lives. And those lives may be happier if they are lived separately.
But grey divorce poses some unique challenges, particularly financial ones. For example, newly-single baby boomers may pay a higher tax rate than a married household. If a single head of household and a married couple each have $150,000 in income per year, the single boomer will pay 19 percent more in federal income tax.
In addition, some newly-single baby boomers may feel ignored by financial planners. Many retirement and investment strategies are tailored toward married couples and it can be difficult to know how to handle these assets after a divorce
The process of ending a marriage can be stressful and difficult. It is important to work with someone who can represent your interests and protect you in or out of court. Even couples who appear to be on the same page should secure their own separate legal counsel. Consider working with an experienced family law attorney who can guide you through the process and pursue the best possible result for you and your loved ones.
Source: Fox Business, “Financial Planning for Newly-Single Boomers,” Casey Dowd, Feb. 14, 2013