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Retirement can face an impact from divorce

The end of a marriage can be an emotionally and logistically difficult time for spouses in New Jersey. More than that, however, it can also be a particularly challenging time for figuring out how to handle financial pressures. This can be of concern to people who choose to divorce later in life, especially as the divorce rates have risen for Americans over 40 and doubled for couples over 50 years old.

For people choosing a divorce at the same time that they near retirement age, financial issues could be compounded. It is important for divorcing spouses to have an understanding of the financial picture in question, including income, debts, assets and budgets. While people with limited funds can face financial challenges with the end of a marriage, high-asset divorces also carry their own complications.

One of the major questions to deal with during asset division is how to handle the marital home. One spouse may seek to keep the home, but this will mean being responsible for all home expenses on just one income. It can also mean either buying out the other spouse or dividing the rest of the property to reflect the value of the house. Other divorcing families keep joint ownership of the home for some period in order to benefit from rising home prices.

Retirement funds can also be a major concern for divorcing spouses. Longtime homemakers may be unable to receive Social Security on their own if they have worked for less than 10 years. However, people who were married for 10 years or more may qualify for half of the benefits of their former spouses. This would not decrease an ex-partner's benefits.

Divorcing partners dealing with divvying up high-value homes, businesses, 401(k) retirement funds, investments and other significant assets may want to obtain legal representation. A family law lawyer can help during negotiations for property division, child custody and other matters.

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