When a Virginia couple decides to end their marriage, they will have to divide all marital assets between them. This includes assets accumulated while married, such as real estate and long-term savings. The divorce process can take a significant toll on retirement savings, which is why it is especially important for anyone who is nearing retirement age to think carefully about all decisions they make.
Gray divorce applies to those ending a marriage and are age 50 and up. It is is especially complicated for those who are planning to stop working in the next 10 to 15 years as they have less time to rebuild savings and adjust plans for their future. They will have to move forward with less savings after dividing assets with the other spouse.
In addition to the loss of retirement savings, it is also important to consider that divorce will likely lead to a reduction in income. Someone who is recently divorced will be living off one income, paying taxes as a single adult and paying for new expenses, such as a mortgage after moving out of the family home. Every financial decision in divorce has both short and long-term implications.
It is possible to make it through the divorce process with a strong financial future intact. Through careful negotiations and intentional pursuit of terms that make sense both now and long-term, a divorce does not have to decimate plans for the future. Before making any decisions, it may be helpful to discuss terms with an experienced Virginia family law attorney.