These days, it seems more and more older spouses in Colorado are deciding to call it quits. In what has become known as gray divorce, the divorce rate for couples in the United States over the age of 55 has skyrocketed in recent years. A marital breakup at this stage in life definitely has unique challenges, especially when it comes to retirement. A later-in-life divorce can destroy even the most organized and resilient retirement plan. Here’s how to survive a gray divorce with minimal damage to retirement savings.
During the divorce process, some of the most critical decisions involve identifying and splitting assets. Colorado is an equitable distribution state, which means that marital property – as opposed to separate property – will be divided in a fair though not necessarily equal manner. Some things to take into consideration are which assets are liquid and what are the potential tax consequences when they are divided in a divorce.
There’s no doubt that life will be different post-divorce. Just thinking about it can be stressful, and often it can lead to decisions being made on emotions rather than fact. This is a big reason why financial education is critical during a late-life divorce. Divorcing later in life means there is less time to replace savings that were spent or lost. It may be necessary to modify living expenses, cut out unnecessary spending and even delay retirement.
Those who experience a gray divorce should learn as much about their finances as possible and also get educated on laws in their state of residence. Any individual in Colorado going through a divorce could benefit by contacting a legal representative. A seasoned attorney can ensure personal rights are protected and offer guidance throughout this process.