When you divorce in your 50s, you're less likely to have to deal with child custody and visitation issues as part of your Pasadena divorce. But retirement planning can create just as many problems.
If you're thinking about filing for divorce, remember that California is a community property state. This means that assets earned during the marriage belong equally to both parties. This includes employer provided retirement plans. Even if one spouse never worked outside the home, he or she would be entitled to a share of the retirement plan as part of the divorce settlement. For many couples in their 50s, retirement plans can be the largest marital asset. A retirement plan's value may even surpass that of the marital home.
If there is a significant income discrepancy between spouses, alimony is likely to be a part of the divorce settlement. In a marriage lasting 10 years or more, there is no definite timeline set for alimony to end. A former spouse would receive alimony until he or she remarried or began living with a new romantic partner.
Social Security benefits are an often overlooked aspect of divorce in your 50s. If you remain unmarried at 62 years of age, you can begin collecting Social Security benefits based on your former spouse's earnings if the benefit is greater than that which you would receive based on your own work history.
Hiring a financial adviser can be an excellent way to get your post-divorce finances on track. Your adviser can suggest changes to your monthly budget or investment strategies that can boost your retirement savings. He or she can also help you purchase adequate long term care insurance, which is a necessity if you won't have a spouse around to help care for you if you suddenly find yourself in need of assistance with daily tasks.
How Can We Help?
Please call our office at (626) 683-8113 or email us at info@PasadenaLawOffice.com if you are in need of legal representation during your divorce. Our Pasadena divorce attorneys can help ensure that you receive a fair settlement that will help keep your retirement plans on track.