Illinois spouses who may be facing a divorce may be interested in an article discussing the trend toward a higher rate of later-life divorces. Certain factors should be taken into account with regard to asset division in such a divorce.
Statistics from the U.S. Census Bureau show that, as of 2010, 15 percent of women and 11 percent of men between the ages of 65 and 75 are divorced. This is a stark contrast to data from 1960, which shows that only 2 percent of the same age group were split. Other data shows that the divorce rate for Americans over 50 doubled in the two decades preceding 2010. With this trend comes more complex property division issues due to the more substantial assets that older divorcing couples may have.
These assets often come in the form of retirement accounts and real property. Experts recommend that prospective divorcees shy away from taking the house in a divorce. While it may comfort a spouse to stay in the same place, a home can bring with it serious maintenance and other costs. For a spouse who is not on stable financial footing after a split, this can make life difficult. Additionally, when splitting up retirement accounts, it is more beneficial to get part of a Roth IRA than a traditional IRA since the Roth has been funded with money already taxed.
Lastly, it is important for a spouse to enlist the help of an attorney and other family law professionals. An attorney may be able to help by examining both the spouse’s and the couple’s financial situations and negotiating a settlement between the spouses. The attorney may then be able to draft the necessary property division agreements in order to ensure an equitable division of marital assets.
Source: Forbes, “The Big Money Mistake Divorcing Women Make“, Kerry Hannon, July 03, 2014