Divorce will have complications at any age. Unfortunately, that is the price for the freedom you will gain.
Once you understand what particular issues you could face, you can take steps to minimize their effect on you. Here are some that are especially relevant to those close to retirement:
#1. Health insurance entitlement
The health care so often needed in later life can be extensive and expensive.
If you have always had insurance under your spouse’s work policy, you’ll probably lose that entitlement when you end the marriage. Check out the cost of replacing it so your can factor it into your divorce settlement calculations. Remember that getting coverage can be much tougher if you have certain pre-existing conditions.
#2. Retirement funds
You’ll likely have to divide your retirement funds when you divorce. This could leave you substantially less than you thought you had to retire on. Remember that living together is typically cheaper per head than living alone, so your retirement costs may also rise.
#3. Social security benefits
If you have been married for less than 10 years, it might be better to wait until you reach the 10-year mark. This is the point at which you can divorce without sacrificing your entitlement to half your spouse’s Social Security benefits once you hit 62 years old.
You would lose that entitlement if you remarry or are entitled to higher benefit amounts yourself. Your spouse remarrying would not affect your entitlements.
There’s a lot to think about when considering a divorce. Seek legal help to ensure you understand your options.