Divorce between spouses reaching the age of retirement is becoming more common in Mississippi and nationwide. Coined as a gray divorce, older couples seeking a divorce will face issues their younger counterparts may not. One issue is how divorce will affect their retirement.
The Center for Retirement Research reports that divorce could impact a person's retirement. According to the CRR, as of right now 50 percent of households in the United States may not be able to keep up the standard of living they had while working once they retire. However, this risk is seven percent higher for households that have gone through a marital dissolution.
There may be a number of reasons for this. One is that when a person is divorced, their living expenses are higher than they were when they were married, because they are no longer sharing these expenses with someone else. This means they have less to save for retirement. Moreover, the older a couple is when they divorce, the less time they have to shore up their assets for retirement. Other issues, such as changes to spousal maintenance taxation and home ownership tax deductions may also affect one's retirement savings.
With all of this in mind, it is important that couples going through a gray divorce are cognizant of the divorce legal issues they face. They will want to ensure that the property division process is fair and that they are aware of any financial consequences they will face regarding spousal maintenance. With the right information, spouses going through a gray divorce can make sound decisions that are in their best interests.