According to the National Center for Health Statistics and the U.S. Census Bureau, since 1990 the divorce rate for Americans 50 and over has doubled, practically tripling for those ages 65 and older.
Leading the current upsurge in what’s known as gray divorce are fed-up baby boomer wives in grin-and-bear-it marriages hoping to carve out more satisfying lives in their remaining years. Thanks to longer life expectancies, their remaining years could well extend decades into the future.
Financial advisors can show their value by helping to guide clients through the financial challenges of this type of divorce – one of the top three threats to financial independence – since later in life there is less of an ability to make up financial ground by being employed at a top salary, and also considering the psychological instability which can follow divorce. Over-50 divorced clients are usually in a highly fragile emotional state, and so a combination of very strong empathy and the ability to maintain professional decorum is a requirement for any advisor wanting to work in this segment.
Couples usually create two new separate retirement plans, typically dividing the assets, including their retirement plan, down the middle. Powerful financial planning can be done by experienced advisors in complex cases, where jointly-owned businesses and insurance policies are involved, but it’s important to avoid collisions with attorneys in terms of what makes sense from the financial versus the legal point of view.
For more information, please read:
When Clients Divorce After 50, How Advisors Can Rescue Retirement Plans | ThinkAdvisor