Divorce Retirement: Financial Advisers Face Challenges When Couples Split Later

NEW YORK, March 12 (Reuters) – As part of the retirement planning process, financial advisers often help married couples prepare for the eventuality of one dying before the other.

What few people talk about is what happens if the couple divorces as they are approaching retirement.

Unfortunately, this is becoming more and more common. Over the past 20 years, the divorce rate among people between the ages of 48 and 66 has increased by more than 50 percent, according to U.S. Census Bureau data.

“We always talk about the risks people face in retirement, like inflation risk and health care costs risks, but very rarely does anyone mention the risks of being single in retirement,” said Tina Di Vito, head of Bank of Montreal’s BMO Retirement Institute.

For financial advisers, a divorce by clients can be a minefield of strong emotions and conflicting interests, not to mention their shock at seeing their assets get cut in half.

Read More : Reuters