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Mid-Life Divorce and Retirement

By October 13, 2015September 6th, 2023No Comments

Since 1990, the divorce rate among Americans over the age of 50 has doubled. If fact, one in four divorces now involves a couple in this age group. On top of the emotional impact of a long-term marriage ending, late-life divorces can have a devastating effect on financial well-being in retirement. Our retirement planning services in Denver are here to help you figure everything out. Coming at a time when there is often more wealth to lose, there is also less time to rebuild assets. If you have friends or relatives contemplating divorce, sharing the following information may improve their situation. If you need a shoulder to lean on in your time of need, reach out to our Denver investment firm. We are here to help you!

For starters, it’s a good idea to obtain an accurate picture of potential debts by getting credit reports for both spouses. If a couple resides in one of the nine states with community property laws, each spouse is responsible for half of everything the other owes – even if the debt is only in one name.

When it comes to splitting pensions and retirement plans, agreeing upon percentages (rather than fixed amounts) can be less risky if the markets turn down and more fair if the markets swing up. Getting a Qualified Domestic Relations Order can protect the husband and wife from incurring tax penalties when funds are transferred to another account. Beneficiary information on remaining accounts should be updated immediately.

Emotions can cloud the decision of whether to sell or keep the house. A spouse who keeps a home in lieu of other assets may not have the finances needed to maintain it. On the other hand, homes can come with capital gains tax advantages other investments might not enjoy.

Spouses who have earned lower Social Security benefits than their mates can draw half of their exes’ monthly benefits at the appropriate age, as long as they were married for 10 years or more and they start collecting benefits before remarrying. And this won’t impact the other spouses’ benefits.

Once everything is finalized, it’s important not to become too risk averse. With inflation and today’s longer life expectancies, portfolios need to grow to provide adequate security. We’re happy to help guide someone you care about through these rough waters so they can look forward to a happier retirement.   Call your Denver Financial Planner, Jordan Dechtman at 303-741-9772, email him at Jordan@JordanDechtman.com or visit our website to schedule an appointment at Dechtmanwealth.com

Written by Securities America for distribution by Jordan Dechtman.

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Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.

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