Gray Divorce? Hire a Financial Planner Even Before a Good Divorce Attorney

The divorce rate of people over 50 (aka “gray divorces”) has doubled since 1990, wreaking havoc on many a retirement plan. When assets are cut in half but the costs of individual living increase, downsizing is often unavoidable–which makes many of these settlements acrimonious. We hate to be the unromantic voice of reason, but research projects that gray divorce rates will continue to rise, with more than 800,000 occurring annually by 2030. At this age beyond all others, it is important to take into account all assets, as there is limited time to build back a portfolio, yet of course that’s easier said than done when focus and emotions are tied to the failed relationship, at least initially.

According to the New York Times, here’s the expert recommendation: hire a financial planner even before a good divorce lawyer. They can help negotiate a better settlement for all sides by taking advantage of retirement plan laws and tax-free distributions. By approaching the divorce as a business transaction and gaining awareness of all of their assets, individuals are less likely to go after emotional assets, for example a house, that they may not be able to afford. Divorces are difficult enough. Planning for each other’s financial success from the beginning will certainly result in less resentment and more money to split when all is said and done.