People in Texas who decide to divorce may already be aware of the emotional, practical and financial difficulties that can accompany the end of a marriage. However, these changes can affect areas of life that people may not automatically consider when first considering a divorce. It is possible to surmount these challenges, but it can be important to consider these issues during the divorce negotiations, settlement process and when planning for the post-divorce financial future. One such issue is retirement planning, an issue that may loom large for people who divorce later in life but may seem less urgent to those separating at a younger age.
According to a study conducted by the Center for Retirement Research at Boston College, Americans have a 50 percent chance of retirement risk. That is, they may be unable to maintain their current standard of living after retirement. For households with a divorce in the past, that number was 7 percentage points higher. There are a number of factors that may contribute to the change, including the expense of living as a single person in terms of housing, health insurance, transportation and other costs that are often shared during a marriage.
Of course, retirement funds themselves are often the largest asset involved during property division in a divorce. The effect of this can be particularly significant for the growing number of people who choose a “gray divorce,” which is a divorce over the age of 50. These people have less time to plan their financial recovery from their divorce and restore their retirement savings.
When going through a divorce, it can be important to keep the future in mind when working towards a financial settlement. A family law attorney can advocate strongly for the best interests of his or her client in terms of property division, spousal support and other key issues.