For spouses in California who have spent years growing their retirement savings, divorce can pose a wide range of problems. While the financial aspects of divorce can be some of the most challenging for people of any age, when it comes to retirement funds, couples over 50 are at a particular disadvantage. Unlike younger couples with more years to come in the workplace, seniors have fewer opportunities to rebuild their investments following a divorce.
Since the 1990s, the divorce rate for Americans older than 50 has doubled, and this trend is expected to continue. When a couple has been together for many years, retirement savings could be their largest single asset. The complexity of separating those funds could lead to animosity between the spouses.
Some financial experts advise collaborative divorces for people who choose to split later in life. In this type of divorce, the spouses work together with their lawyers to negotiate a financial settlement in hopes of cutting down on court costs and a lengthy battle that could strip significant assets from the couple’s joint property.
Tax law changes could also be relevant in reaching a settlement of an impending divorce. For all divorces finalized in 2019 or later, the tax burden of alimony payments will shift from the recipient to the payer.
No matter how old a divorcing couple may be, dealing with asset division is one of the most difficult and important aspects of reaching a resolution. A family law attorney can provide strong representation and valuable advice throughout the divorce process.