We are continuing our discussion from our last post about the increasing number of divorces among Americans 50-years-old and older. A later-in-life divorce poses certain challenges, especially with retirement planning. And, unfortunately, the trend away from spousal maintenance in Illinois and elsewhere can mean a dramatic change in circumstances for women who spent part or all of their marriages at home.
It is no secret that the Baby Boom generation is nearing retirement. It is no secret, either, that the divorce rate among Americans age 50 and over is on the rise. Between 1990 and 2010, the divorce rate doubled for that population; one in four Boomer marriages failed. Welcome to the phenomenon known as "gray divorce."
There are many issues of primary importance when people are considering divorce. Others items, however, may seem unimportant or too far into the future to matter. Among the items that are often neglected in a divorce proceeding are Social Security benefits. However, ignoring the ramifications of divorce on Social Security claims can be a costly mistake.
If you get the shakes looking at your investment statement these days, imagine how you'd feel if you were going through a divorce. It's stress piled on stress, and the more stress couples have, the more likely it is the divorce will get ugly. And the uglier the divorce, the more expensive it is. Which brings everyone back to the investment portfolio, or what's left of it after the latest market downturn.