Should I Delay Retirement if I Get Divorced?

 Posted on January 27, 2023 in Divorce

Because most people get married with the intent to stay married for the rest of their lives, very few plan on getting divorced. This means that even few have a backup financial plan for divorce, which is notoriously tough on savings and income. This often leaves older divorced individuals without much in the way of retirement savings or with far less than they thought they would have.

Does this warrant delaying retirement or giving it up altogether? After all, you likely have half of your former asset portfolio and your expenses may have doubled or gone up even more than that. As with most legal situations, the answer depends on your specific circumstances and long-term goals. Speaking with an Illinois divorce attorney who has experience managing divorce later in life can help you determine what is best for you.

How Are Assets Divided in a Gray Divorce?

Often termed “gray divorce,” a divorce that happens later in life can result in significant upset to an individual’s financial stability. It is important to consider this and to plan ahead when making decisions during your divorce, especially in regard to negotiations over asset division.

Illinois law requires a couple’s marital financial portfolio to be divided equitably, which does not necessarily mean equally. Although couples are encouraged to create a financial division on their own, a court will still need to approve it for legality, and if a court has to get involved, how and where assets are allocated will depend on several factors. These include, but are not limited to:

• Any independent financial resources of each partner
• Each partner’s ability to work and earn an income
• Whether either partner has a disability
• Each partner’s contribution to marital assets and debt
• Whether either partner worked as a stay-at-home parent instead of taking a job outside the home at any point during the marriage

Depending on your age, your long-term financial goals, where you live (or plan to live), and other factors, you may want to try to negotiate an asset division that allows you to keep your marital home; or, you may be willing to give up ownership in your marital home for a larger portion of your savings and investments; or you may want to sell the home and live off the proceeds. The complications inherent in making these decisions make it essential to consult a family law attorney as well as relevant financial professionals.

Call a Kendall County, IL Gray Divorce Lawyer

Questions about how divorce might impact retirement planning are common and deserve serious thought. If you are thinking about divorce and wondering what impact it could have on your retirement plans, contact the Kane County, IL divorce and retirement lawyers with Divorce Over 50 - Goostree Law Group. We offer free consultations so we can learn more about your case and help you understand your options. Call 630-634-5050 today.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm