The number of divorces for those over the age of 50 doubled from 1990 to 2010 according to the National Center for Family & Marriage Research. This may have a significant impact on an older person’s ability to retire. Those who have never been divorced received an average of $22,607 from Social Security each year while those who have been divorced after age 50 received $12,092 on average per year.
However, it may be easier to achieve some sort of financial stability by remarrying. The poverty rate among those who got divorced after age 50 and then got married again was only 3.3 percent. One caveat is that a second or third marriage is less likely to last as a first, which means that people may have find themselves in the same situation even later in life.
Another issue to consider after a divorce is whether or not to keep a marital home. While there may be sentimental or other attachments, keeping it may not be the best financial decision. This is because a retirement account may be worth more in the future while the cost of maintaining a home may take away from the ability to save for retirement.
As emotions may run high during or after a divorce, it may be a good idea to consult with an attorney. Legal counsel may look at the case strictly from a factual perspective and then take the lead in attempting to negotiate a comprehensive settlement agreement that takes the client’s anticipated financial situation after the marriage is dissolved into account.