Many factors come into play when a California couple or others around the country decide to end a marriage. For whatever the reasons that lead to a divorce, couples of all ages routinely decide to call it quits. Researchers have long tried to analyze divorce trends among the different generations. Is there one age group that has a higher divorce rate than the others?
There has been a significant increase in the number of couples over age 50 who have decided to end their marriages. The phenomenon is so prevalent in California and other parts of the country that it has been referred to as "gray divorce." While going through a divorce can be fraught with issues at any age, older couples do need to exhibit caution and thoroughness as they navigate the subject of retirement finances.
Social Security benefits have long been on the horizon for many California residents and others throughout the nation. Once someone reaches a given retirement age, he or she is eligible to receive some level of benefits. This is also true for those couples that have gone through a divorce. Representatives from a personal financial website recently discussed how to avoid potential problems when dealing with Social Security following a divorce.
In a marriage, there are often clearly defined roles regarding the handling of finances. One spouse is typically responsible for financial matters, while the other may be either somewhat engaged in the decisions or completely unaware of what is going on. When a divorce occurs, California couples and others around the nation are thrust into situations where finances must be handled separately. While this may not be a concern to the spouse who had been dealing with the family budget all along, it can be a rude awakening for those who have never been engaged with finances before. No matter where a person falls on the financial spectrum, it is important to be proactive about how a divorce will affect an individual's money situation.
Many California couples and others around the country have celebrated anniversaries of over 20 or 30 years. Their children may be grown and have started families of their own. At this point in their lives, they may have assumed that their marriages would last forever. However, according to a major university researcher, the phenomenon of gray divorce is happening more frequently in society.
Prenuptial agreements are rarely thought of as romantic when a California couple is preparing to get married. One or both of the future spouses may believe that bringing up the need for a prenup gives the impression that divorce in the future is a possible outcome. However, financial advisors believe that such agreements can actually strengthen a couple's relationship.
Social Security payments are an anticipated source of income for most California residents and others around the nation as they approach retirement. Many have worked for years on jobs and have included estimates from the government agency in their projections of retirement income. However, as more older couples decide to end their marriages, those getting a divorce may need to examine how potential Social Security income may be affected. Census Bureau statistics show that over the past 25 years, the divorce rate for those over 50 has almost doubled.
While modifications are made every year that affect how California residents and others around the country pay taxes, there have been some major changes in the federal tax laws, starting in 2018. A significant change is coming for the way alimony payments are taxed effective Jan. 1, 2019. Industry experts predict that these proposed changes will have a profound impact on divorce deliberations throughout the current year.
When a California couple or another elsewhere in the country makes the decision to end their marriage, there is often a sense of great relief. However, that feeling of relief may change to one of apprehension when someone realizes all the issues that must be addressed in a divorce. Certainly, if the couple has children, matters surrounding their care and upbringing are first and foremost in the deliberations. Apart from that, questions regarding finances are prominent in most couples' minds.
When a California marriage comes to an end, it is common for those involved to be concerned about how their finances will be affected. One household becomes two, then separate budgets, expenses and savings are established as a result of divorce. Experts recommend several steps to take in order to safeguard someone's finances following a split.