#1 Category: Personal and Family Risks—Change in Marital Status
A divorce or a separation can create big financial issues for both partners. This important decision can affect benefit entitlement under public and private retirement plans, as well as individuals’ disposable income.
Splitting the common assets will most certainly end up with an overall loss when it comes to the standard of living for both parties, especially if their lifestyle had been maintained by pooling income and resources.
In fact, some experts think that an individual may need about 60 percent to 75 percent of a cohabiting couple’s income in order to maintain his or her standard of living. This is mainly because costly expenses, such as rent and utilities, remain the same, but now only one person will bear the cost.
Although divorce rates among retired couples are actually lower than for employed couples, it is not that uncommon for an older couple to get a divorce. Prenuptial agreements may be used to define each party’s right to property prior to marriage. Or maybe a postnuptial agreement is for you.
