As Divorce Rates Rise for Those Over 50, Experts Advise on Avoiding Financial Disaster | Law Firm Newswire

As Divorce Rates Rise for Those Over 50, Experts Advise on Avoiding Financial Disaster

Orange County, CA (Law Firm Newswire) December 31, 2014 - Recently, the divorce of an older Midwestern couple made headlines as the spouses waged a high-profile legal battle in court over a multi-billion dollar fortune amassed during a 26-year marriage.

But that case is an anomaly. As the divorce level rises among couples over 50, experts suggest that the only ones getting rich are the divorce attorneys. 

An article in AARP pointed out that in 2010, the divorce industry made $50 billion, while many of those getting divorced ended up in financial difficulty. Maria Cognetti, the president of the American Academy of Matrimonial Lawyers, told AARP that older couples should try to settle their financial agreements out of court.

“If older couples can reach an agreement outside of court, they should,” agreed Gerald Maggio, a divorce mediator in Orange County, California. “Once the process turns to litigation, retirement assets that took a lifetime to build can end up being needed to pay lawyers and court fees.”

Instead, Maggio suggests, older couples can achieve better outcomes while saving money by turning to different kinds of divorce professionals.

One such professional is a Certified Divorce Financial Analyst (CDFA), who can help spouses understand their financial options as they move forward with the divorce. As AARP suggests, older couples need to consider retirement accounts, social security benefits and spousal support.

Once the financial picture is clear, experts agree that older couples can save money - and perhaps their retirement accounts - by choosing a divorce process other than traditional litigated divorce. The most cost-effective option, frequently, is divorce mediation, in which both spouses work with a single mediator to create a settlement agreement. Often, divorce mediation can be done for a flat fee.

The other option is collaborative divorce, where each spouse retains an attorney but agrees to settle all issues out of court.

“Twenty years ago, divorcing couples did not have many other options than to go before a judge,” commented Maggio. “Today, all couples can take control of the process and the cost of it. Divorce does not have to spell financial disaster.”

California Divorce Mediators
Main Office
420 Exchange
Suite 270-B
Irvine, CA 92602
Call: (949) 553-0911

Riverside Office
3750 University Avenue, Suite 670
Riverside, CA 92501
Call: (949) 553-0911

  • Pros and Cons of Cohabitation Versus Marriage in California
    The subject of whether marriage better or cohabitation warrants a lot of debate based on people’s personal experiences and beliefs. There are some who believe nothing can replace a marriage in a loving relationship, while others beg to differ and believe that cohabitation is equally amazing without the legality of marriage. We discuss some of […]
  • What Can And Cannot Be Considered As Income For Child Support
    Divorce is always a difficult period for the couple going through the procedure. The proceedings, however, are much harder if there are children involved. Children below the age of 18 are involved in the unpleasant business of divorce despite their unwillingness. Divorce settlements often do not proceed smoothly especially when there are issues revolving around […]
  • Divorcing A Spouse Who Does Not Want The Divorce
    There could be a time when you want to end your marriage but your spouse does not want it to continue. It is possible to get a divorce in such a case. Do note that such a contested divorce can take a lot of time. It could also involve a number of complexities. Trial needed […]
  • Creating A Divorce Safety Plan In Case Of Domestic Abuse
    If you are in danger, call “911” immediately. You are solely responsible for keeping yourself and also your children away from any harm due to domestic violence. You must prepare a safety plan. A safety plan is a scheme which you can execute to keep yourself and your children safe from any kind of domestic […]
  • Paying For Your Child’s Medical Care After Divorce
    In most cases, divorce means one parent generally provides child support. The payment is made to the other parent so that the child’s daily expenses are met, including food, cloth and housing. The problem is that courts cannot predict the future medical expenses of any child. It follows that the support amount every month for […]
  • What To Know About Dividing Antiques In A Divorce
    Other than your home, considerable joint property exists in valuable items present in your home. Similar to the appraisal of the real estate before your divorce, it is a good idea to appraise the personal property as well. This is as the total value of your personal property can add up to a large amount. […]

Tags: , , , , ,

Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required