A growing trend in the divorce rates in Canada appears to be for middle age or older adults. Thus the term “grey divorce”.
There are many concerns that middle age or retired couples may have with regards to splitting their retirement assets and adjusting their retirement goals. If the divorce is close to their anticipated retirement age, they may have less time to recover and rebuild their individual retirement plans post-divorce.
As a Certified Divorce Financial Analyst and Certified Financial Planner professional, the most common questions I get asked is: How much will I be able to retire on, and when can I retire?
Unfortunately, the answer is: It depends.
I can only provide clarity once I understand what the individual’s retirement goals are now, where they will be living, the fixed and variable living expenses, how much debt with they be taking on alone, do they expect to have the same lifestyle as they did during the marriage, are there any health issues, how will the marital assets be equalized.
There are a number of other items I need to factor into the retirement forecast like the individual’s risk tolerance, ability to work longer, ability to qualify for new mortgage or credit, government benefits, taxation, inflation, etc. While your lawyer will be able to advise and guide you on the legal matters and the collaborative process, they will not be able to provide you with the financial projections you are looking for.
To give you the peace of mind that you know what your retirement picture will look like post-divorce, make sure you add a collaboratively-trained financial professional to your divorce team.
In early June 2019, I had the pleasure of participating in a podcast interview with Catherine Potter to discuss the concepts of Collaborative Practice.
The word finance evokes so many emotions in people that it can stop you in your tracks. Add in the word divorce and it becomes debilitating to a lot of people. The basic fear of not knowing what the end result will be can create more havoc, conflict, time loss, and ultimately, higher costs to reach a resolution.
The legal system is not designed for you, the individual. It’s designed for society as a whole.