It is inevitable that a divorce in Texas will change the financial picture of each parting spouse. However, this change can present more ramifications for an older individual that is divorcing and has less time to recoup for their retirement. The increase in the rate of “gray divorce” over the last 20 years means that many newly-single or soon-to-be-single individuals in their 50s may need to quickly rethink their retirement plans.
Figuring out how to account for this life change can feel overwhelming, but investing in sound professional assistance can pay large returns. During the divorce process, it is important to retain a skilled attorney that will advocate for an individual’s rights in ending a marriage to ensure that the individual is best positioned to being their new life after a divorce.
When looking to begin a new life post-divorce, a financial planner can help an individual in Texas make informed decision about managing money to ensure a secure retirement. An important aspect to consider is long-term care. Many married individuals anticipate that their spouse will look after them in the event that he or she falls ill. After a divorce, it is critical to plan for long-term care.
According to one report, the median-cost in the U.S. of private-room care in a nursing home runs around $81,000 a year. To plan for this expense after a divorce, many will work with an adviser to purchase long-term care insurance.
Following any divorce, it is also important to revisit beneficiary designations for pensions, 401(k)s and life insurance policies. It is also beneficial to revisit powers of attorney documents and will documents to ensure an individual’s wishes are still accurately reflected following life changes like divorce.
Source: Money Watch, “3 concerns for women planning retirement,” Stephen Willians, May 15, 2013