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Planning for a retirement during your Colorado divorce
The looming reality of retirement often influences the decisions people make about their family. From how you choose to finance a child’s college education to concerns about familial dynamics, retirement brings up a lot of unique issues.
Many couples who have remained married throughout their working lives may look forward to retirement with excitement. However, as that time finally approaches, there can also be fear or anxiety about how you will handle retirement as a couple. Couples spend so much of their adult lives focused on caring for their children and on their careers that they don’t maintain their relationship with their spouse.
Growing apart over the years may not seem obvious until you suddenly have to spend most of your time together every day. If you find yourself worried about spending retirement with your spouse, that may be a sign that divorce will offer you a better future during your golden years. However, divorcing later in life requires a special focus on financial stability for the future.
Take steps to minimize the financial impact of divorce
Couples in their 30s and 40s have several decades to bounce back from the financial impact of ending a marriage. The closer you are to retirement age, the more you have to worry about the financial implications of the divorce.
Whatever amount that you have saved during your marriage will likely wind up split between you and your spouse. Even if the account is only in one person’s name, if you accrued the balance during marriage, the courts in Colorado are likely to share it between spouses. You can’t avoid sharing those assets with your ex, but you can avoid unnecessarily diminishing them.
By committing to mediation or another form of alternative dispute resolution in your divorce, you can streamline the whole process and minimize how much you spend on the divorce itself. Filing an uncontested divorce after you resolve your issues in mediation or another resolution process is faster and cheaper than litigating each individual issue in court.
Be willing to work hard to make up for lost funds
Maybe you always dreamed of retiring by the age of 65. If you choose to divorce at the age of 63, that may no longer be a realistic goal. You will likely need to continue working for a few extra years in order to rebuild your retirement savings.
If remaining in the workforce isn’t an option, you may also want to consider ways that you can substantially reduce the cost of your retirement. Reducing your travel plans or even moving to another state could all be ways to minimize the expense of your retirement, allowing you to stretch your funds for longer.