Financial considerations for a post-50 divorce

On behalf of Stange Law Firm, PC posted in Divorce on Saturday, March 2, 2019.

Most people who live in Missouri know someone personally who has gotten divorced or who may be in the midst of a divorce even now. Contrary to what some people may believe, more and more of these people are in their 50s, 60s or even older. Interestingly, in the last two decades, the number of people getting divorced after they reach the age of 50 continues to increase. In fact, according to data from Pew Research, the rate of divorce among people 50 or older is actually 109 percent higher today than it was a quarter of a century ago.

Getting divorced at any age can have a significant impact on a person financially. Getting divorced when a person is close to retirement or maybe has even already retired has a particularly significant financial impact on people. As explained by Forbes, this is a stage of life at which a person either has a reduced income, a fixed income or even a limited number of years left in which to reclaim any financial losses experienced during a divorce.

At the same time as a person’s income may drop or stagnate, a newly divorced person in their 50s or older is likely to find their cost of living increase as it takes more money to support two households than it does to support only one.

The division of assets in a gray divorce may also result in substantial tax changes for one or both spouses and this includes the tax responsibility for alimony which has recently shifted from the receipient to the payor.

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