Over the past 25 years, there has been a significant increase in the number of older couples from Wyoming and others across the country that have decided to end their marriages. In fact, the divorce rate for those over 50 years old has doubled during that time. This so-called “gray divorce” can bring challenges to those involved, along with new opportunities.
Those going through a divorce should evaluate their financial situation. For example, if alimony is awarded in the divorce, the income of an earning spouse may be decreased. That spouse’s income level could be cut in half, plus there may be no funds available to save.
A financial analyst recommends that any disbursement made from a retirement account be rolled over into an IRA or another retirement account. Someone may be tempted to retain some of the disbursement, since those going through a divorce can withdraw funds from a 401(k) with no tax penalty. However, experts advise to leave those funds alone unless there is a specific need.
Experts suggest that any non-working spouses get assistance when making financial decisions. There may be someone who has never worked or managed money during a marriage. It would be wise for someone in that situation to attend financial classes or work with a professional to establish a financial plan.
While there may be significant financial implications with a divorce later in life, some contend that the benefits gained are worth it. Many are excited about the potential goals and opportunities as a single person. It would be beneficial to those contemplating a Wyoming divorce to seek the guidance of an experienced attorney. A knowledgeable lawyer will help a client understand the steps in the divorce process and work in unison to achieve the best possible outcome in the proceedings.
Source: finance.yahoo.com, “Gray Divorce: The Financial Challenges and Opportunities“, Maryalene LaPonsie, April 20, 2017