Your children are adults and out of the house, and now it’s just you and your spouse. And, after spending decades together, you may be realizing that you no longer have anything in common, and you seem to be stuck in an unsatisfactory marriage.
You’re not alone. Americans are living longer and healthier lives, and along the way, they are realizing they don’t want to spend the years they have left with their current partner. But how will a divorce affect your financial stability? Can you really afford a divorce at this stage of your life?
Retirement may look different
Washington is a community property state, which means any assets or debts acquired during the marriage are divided equally. This may sound simple; however, in long-term marriages, complex financial portfolios can make division more complicated.
Throughout their marriage, couples may accumulate retirement accounts, real estate and investments. Even if the division is equal, the types of assets each spouse receives can significantly impact financial stability, particularly in terms of accessibility or potential tax consequences.
You may also have to rethink what your retirement will look like. Savings that were intended to support one household must now be divided between two individuals. This means possibly delaying retirement, adjusting spending expectations or relying more heavily on investment income. Because there are few working years left to rebuild savings, any decisions you make now can have long-lasting effects.
Spousal maintenance often becomes an important factor in later-life divorces, especially if one spouse has been out of the workforce or earns significantly less. Courts may award it based on factors such as the length of the marriage, each spouse’s financial situation and each spouse’s ability to earn income. However, maintenance isn’t guaranteed or may not be permanent. Therefore, it should only be viewed as one piece of a broader financial plan.
Deciding whether or not you can afford to divorce later in life is not just about covering your immediate expenses. You need to look at whether you can maintain financial stability over time. Before making any decisions, it’s important to work with experienced professionals who can help you understand your options and develop a strategy that supports your long-term financial stability.
