Divorce and Retirement
July 26, 2012
Seventy-five percent of Americans close to retirement age in 2010 had less than $30,000 in retirement accounts. According to a New York Times Op-Ed piece from July 22, 2012, if you want to maintain your lifestyle after retirement, you will need 20 times the amount of your annual income in addition to your Social Security Income. These figures do not take into account extraordinary healthcare costs or unforeseen financial catastrophes. And they assume you will only live for 20 years after retirement!
Those who divorce are often in even more dire financial straits. The funds they thought they would have to live on in retirement are severely depleted due to the cost of the divorce itself and the fact that assets are divided between the parties in a divorce. Often, those over the normal retirement age must continue to work to supplement their savings. But not everyone has the ability or employment opportunities necessary to create a meaningful income stream after 65.
Late-life divorces are becoming more common. And the financial impact of a divorce can be devastating since there is less time to make up for depleted assets. If a divorce is unavoidable, you need to do everything possible to minimize its costs – both during and after the process. That includes doing your utmost to avoid litigation where the costs are high and the outcome uncertain.
By using mediation or a Collaborative Divorce process, you have an opportunity to resolve financial issues for the benefit of both parties and at a lower cost. By selecting neutral experts, you can avoid paying tens of thousands of dollars for competing opinions and extended testimony. By choosing an out-of-court process, you avoid long delays and the enormous cost of formal discovery. You can benefit from your attorney’s legal advice without having to bear the burdensome cost of court time.
Your goal is to be part of the 52% of Americans who say they will be comfortable in their retirement. Your goal is not to deplete your retirement funds in a divorce.
For more information on Mediation and Collaborative Divorce, contact Risa A. Kleiner, Esq. at 609.951.2222 or firstname.lastname@example.org