New research from the United States has highlighted the negative impact divorce can have on the level of income available in retirement.
The study, which was conducted by the Centre for Retirement Research at Boston College with the support of Prudential Financial, Inc., found that divorced households have a 7% greater risk of not having adequate retirement income than households that have not experienced divorce.
The study’s findings show that on top of the normal retirement worries, divorced couples are dealing with legal fees, splitting assets and increased living expenses, and they must find ways of making up for that loss. It notes that whatever course of action people take, taking professional advice is always recommended.
This is not an issue unique to the US, and a recent study from the UK also highlighted the negative impact divorce can have on a couple’s financial wellbeing.
In its Family Finances Report, Aviva highlighted that the majority (68%) of couples who divorce or separate have financial issues to resolve, with the process taking on average 14 and a half months, three months longer than in 2014.
In addition, it found that the hidden cost of divorce and separation continues to grow, with UK couples spending an average of £14,561 on legal and lifestyle costs when they break up, an increase of 17% since 2014 when it totalled £12,432. Moving out of the marital home can add £144,600 to this bill on average for those buying a new property (16%), or more than £35,000 for those renting (51%).
Aviva has urged couples to ensure they have an equal understanding of household finances to prevent long-term financial plans from going off-course in the event of a relationship breakdown.
I have years of experience in helping clients from a range of backgrounds achieve a successful divorce, making the process as pain free as possible. I offer a range of family law services including; divorce, fixed fee divorce, financial settlements, child law and related family law matters. To discuss your case with me, call today on 07917711887. I look forward to helping you find peace of mind.