When it comes to retirement, many individuals in California and elsewhere consider it vital to have a strategy in place. However, while preparing for this period in life, certain scenarios could prove challenging to account for, such as the end of a marriage. Divorce can have a significant impact on one's plans for the future, perhaps especially for those who haven't played an active role in marital finances.
When it becomes clear that a marriage is no longer functional, a divorce could be the healthiest solution for everyone involved. However, even if it is the best path, it can still be a stressful decision to make, and the outcome of a divorce can affect a person's financial future. For those who leave many or most of the financial decisions to their spouse, being prepared for life after divorce can be a challenging task.
Recent studies suggest that more than 50 percent of married women choose to leave decisions regarding investments and financial planning to their spouses. Not only could this leave a person unprepared to handle the future, it may also reduce their awareness of marital assets significantly, which could prove detrimental during divorce proceedings. Of those surveyed who chose to remarry, nearly 80 percent say they decided to take an active role in financial decisions.
Going through a divorce late in life can be a challenging process, and preparing for what comes next could prove essential to protecting one's plans for retirement. Those who wish to safeguard their futures from unnecessary harm could choose to consult with a family law attorney early in the process. An attorney in California can help a client understand what to expect during divorce and assist in pursuing the most favorable outcome possible during legal proceedings.
Source: bloomberg.com, "Rise of 'Gray' Divorce Forces Financial Reckoning After 50", Suzanne Woolley, April 13, 2018