A new study published by the Center for Retirement Research confirms what many financial analysts have long suspected. Divorce has a way of adversely impacting an individual’s current and future financial situation. The researchers working on this latest study determined that it’s unlikely that many spouses who divorce moving forward will be able to continue to fund their current standard of living once they retire.
There are a number of expenses that a divorcing spouse will have to foot the bill for soon after they decide to end their marriage.
From the time you or your ex decide to move out of your marital home, you’ll have to start getting accustomed to footing the cost for your household bills on your own without your spouse’s help. You’ll also need to get your ducks in order so that you’ll be prepared for what happens if you lose a significant portion of your assets. Another cost is legal fees.
The loss of your assets, increased household expenses and legal fees can force you to have to tap into your retirement account.
In case you’re wondering how these expenses put your retirement in such significant peril, it’s largely due to how researchers define “risk”. Anytime that the rate that you’re projected to need to replace the money in your retirement account drops by 10 percent or more, it affects your ability to continue living on the same level that you have historically been able to live.
According to the National Retirement Risk Index (NRRI), an all-time high of 53 percent of divorced Americans were deemed at risk in 2010. The latest statistic from 2016 shows that 50 percent are.
While many divorcing spouses may expect divorce to be costly, especially if they’re involved in a contested divorce that requires litigation, few realize how lasting the financial impact can be if they don’t quickly change their lifestyle or budget more wisely.
A Fort Myers high asset divorce attorney can help you negotiate a settlement where you receive alimony or child support and other benefits that can help you maintain the lifestyle that you’ve long been accustomed to living.