New York residents and others who get divorced later in life may find that it complicates their estate and retirement planning efforts. According to the National Retirement Risk Index from Boston College, 53% of households that go through a divorce are at risk of not having enough money for retirement. The NRRI estimates that only 48% of households that don’t go through divorce will not have enough to retire on.
Legal fees are one reason why those who end their marriages will likely have less money for retirement. After a marriage ends, individuals may have to cover expenses on their own that they used to share with their spouses. Finally, individuals may lose out on tax breaks that they were entitled to while they were married. Women who get divorced may face the prospect of having to balance their need to work with their need to raise children. Men may be responsible for providing alimony or other financial assistance to their former spouses while providing for new families.
In many cases, individuals who choose to end their marriages will need to figure out what to do with their marital homes. While it is possible to sell a home, transaction fees and market conditions may make it difficult to maximize the value of that asset.
Those who have questions about retirement asset division or other divorce issues may want to have an attorney answer them. An attorney may also agree to represent a person’s interests during a divorce proceeding whether it is settled during mediation or during a formal trial. Legal counsel may be able to provide insight into how a person might be able to protect a child’s inheritance or obtain custody of a minor child after a marriage comes to an end.