Kevin Qualls Family Law
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Divorce for baby boomers could result in retirement problems

As the baby boomer generation nears retirement, they are likely be constantly thinking about whether they will have enough money to live comfortably in retirement. This can be a legitimate concern, especially given recent financial hardships for many Americans. However, when two people file for divorce in their 50s, their concerns might be even greater.

Now, instead of having two retirement incomes, they might only have one, and it could be smaller than they had anticipated with more expenses because they don't share expenses with another person. Although the financial impact can be manageable, it is important that property division is handle wisely during the California divorce process.

One thing that couples might want to consider when dividing property in a divorce to ensure they have enough money to retire on might be who will keep the house, or whether they might sell it and split the money from the sale if there is anything left over after paying the mortgage.

Additionally, couples might want to consider what they do with money that is split from retirement accounts. At a certain period they might be able to withdraw some money from these accounts without a tax penalty after a divorce. A divorce attorney can work with financial professionals to help advise the person on the best way to handle finances. They can also work to ensure the person has enough money to make it to retirement and will be able to sustain their lifestyle once they are able to retire.

Source: Forbes, "4 Divorce Mistakes That Can Derail Retirement," Marilyn Timbers, Aug. 21, 2013

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