Even as divorce rates for those in Massachusetts have fallen, failed marriages among people over 50 doubled from 1990 to 2010. As a result, it’s having a disproportionate effect on women.
Unlike divorces earlier in life, later breakups have a huge impact on individual finances, often forcing people to delay retirement.
According to a study by economists, the later a woman divorces, the more likely she is to be working full time late in life.
The financial price of divorce is bigger than legal fees and court costs. It also means splitting your assets in two while many costs suddenly double: two homes to maintain, two rents, two electricity bills, and so forth.
When women with children divorce, they often trade away retirement assets to hold onto the family home. But financial planners warn this can be a big mistake. Even if they’re able to afford the costs of maintaining the home, these women can end up way behind on their retirement savings.
As a result of this dynamic, divorced people are much more likely to be poor in their 60s, 70s, and beyond. Previous research shows the poverty rate is very low for married Americans over age 62 who never divorced.
One reason for this disparity is Social Security. Married people who have never been divorced get an average of $22,607 per year from the federal retirement program, while single people divorced after 50 qualify for an average of $12,092.
Should you be in the midst of a divorce or contemplating divorce, contact the Law Offices of Renee Lazar either through email or telephone 978-844-4095 to schedule a FREE one hour no obligation consultation to discuss your needs.