The divorce rate for those over the age of 50 has doubled over the past 30 years. Though there are reasons for this increase, it is believed that those who have been remarried are more likely to seek a second divorce. Arizona residents who are facing a "gray" divorce may worry about how to plan for their retirement.
Though it may be more difficult, it is possible to survive financially intact after a gray divorce. One of the first steps to remain financially solvent is to reassess the monthly budget. One is encouraged to analyze the current marital standard of living and then work out a new budget based on the assets one will have after the divorce. It is likely that expenses will need to be reduced and the income may need to be supplemented. One should take into account the change in tax status as well as a possible change in Social Security benefits.
Alimony may become an important consideration due to the change in the tax laws. Along with adjustments in earning and spending, one is encouraged to reassess retirement goals and plan ways to meet those goals. Though a divorce may mean that retirement accounts will be divided, those over the age of 50 are permitted to increase their contributions to a certain level without any tax consequences. Along with these considerations, health insurance may be another expense that will need to be covered after a divorce.
It is important to revisit estate plans after a divorce and to update beneficiary information. One possibility to ensure that one's goals are obtainable may be to delay retirement. Doing so may provide more time to save as well as increase income flow in order to reach financial goals. Arizona residents may be best served by consulting with an experienced attorney who can provide assistance in structuring a settlement that will allow one to meet his or her financial goals.