The divorce rate amongst older Americans is on the rise for a number of reasons. However, regardless of the reasons, when older couples divorce, there are number of things that can be greatly affected. One area that Maryland couples may not think about right away is how divorce will affect their retirement.
The fears pertaining to retire savings after and during divorce can truly affect the standard of living for people once they divorce. One tip to keep in mind is to know the value of any real estate involved. It is advised that couples consider the appreciated value of any real estate when they are dividing up assets.
Another financial aspect of retirement and divorce to contemplate is tax implications for taking out retirement money early for the purpose of splitting it up. There are also penalties associated with early withdraw from different types of retirement accounts. It is advisable to consider only withdrawing what you may truly need a little at a time.
While there are no set of rules as to how best to split up lifelong retirement savings during a divorce, there are many details to consider before splitting anything. It may be best for both parties to fully understand the true state of the finances now and what those finances could look like in the future. The more both parties understand tax implications, real estate holdings and penalties, the more likely Maryland couples divorcing late in life will be fully prepared and still on a path towards enjoying their sunset years.
Source: lajollalight.com, The Silver Divorce: 4 Mistakes That Can Affect Retirement, Nancy Fagan, Aug. 29, 2013