Ending a long marriage near retirement age brings unique financial challenges. For many Broomfield seniors, splitting retirement savings feels like watching years of planning unravel. But with the right approach, you can safeguard your financial future despite this major life change.
What is gray divorce?
Gray divorce means dissolving a marriage of couples aged 50 or older. This trend has grown recently, bringing distinct money concerns for those approaching retirement or retiring.
Steps to shield your retirement funds
To protect your nest egg during a late-life divorce, consider these key actions:
- Collect all financial records: Gather statements for retirement accounts, pensions and investments.
- Learn tax effects: Know potential penalties for early withdrawals or asset transfers.
- Look into a Qualified Domestic Relations Order: This legal tool can help divide certain retirement accounts without penalties.
- Check social security options: Find out if you can claim spousal benefits based on your ex-partner’s work history.
- Update your budget: Plan to live on a single income.
Before you take any of these steps, talk to a financial advisor and a lawyer who knows about gray divorce. They’ll give you personalized advice based on your situation and Colorado laws.
Remember, Colorado law has specific rules about dividing assets in divorce. Your lawyer can explain how these apply to your case. They’ll also help you understand your rights and options for protecting your retirement savings.
With the proper knowledge and support, you can face this challenge head-on and work toward a stable financial future, even after a late-life divorce.
