For decades, the United States had one of the highest divorce rates in the world, with an estimated 50% of marriages expected to end in separation. While divorce may finally be on the decline for America’s youth, older couples continue to dissolve their marriages at unprecedented rates. And older Californians may face retirement risks when divorcing. When you divorce later in life

How Divorce Could Endanger Your Retirement

Divorce always has the potential to be complex. For older people, separation may carry increased risk. Why? Many Californians over the age of 50 have spent decades in the workforce, saving money, acquiring property, and preparing for retirement. Divorce could eradicate these careful preparations and cause otherwise reasonable people to make colossal mistakes.

Mistakes When Divorcing Late in Life

  • Demanding ownership of the house over retention of other financial assets
  • Ignoring the tax implications of divided retirement funds
  • Rolling a spouse’s retirement account into an IRA immediately after separation
  • Decimating their retirement savings by withdrawing emergency funds from a retirement account with a tempting tax-penalty waiver 
  • Forgetting to review and revise their estate plans, potentially leaving properties, insurance payouts, and important responsibilities to a soon-to-be ex-spouse

The trauma of separation makes many people lose sight of the need to continue saving and preserving resources for retirement. Without the right guidance, couples risk losing their nest egg as well as their children’s inheritances amidst court proceedings.

When You Need an Attorney in California

The Law Firm of Kavesh, Otis & Minor, Inc. has decades of experience helping Californians of all ages protect their estates. If you or a loved one are undergoing a late-life separation, you may need a strategy to keep your assets under protection from a jealous spouse’s attempts to seize your hard-earned retirement. Our experienced attorneys can help you keep your life’s work safe from incursions, giving you the peace of mind you need to meet your goals and fulfill your aspirations.

Please send us a message online, or call us at 1-800-756-5596 to schedule your free, no-obligation consultation as soon as possible.

 

Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.
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