Everyone knows that marital breakdowns can come with hefty price tags. But the age of an Ontario couple and their stage in life can make a big difference in the financial impact they experience in a divorce. According to recent research, divorcing when older, such as in one's 50s or 60s, is more detrimental to finances than a breakup earlier in life.
There are a few reasons for this, according to the study. When people reach their 50s or 60s, their assets and income are usually fairly cemented. Their income-earning days may be close to done if they intend to retire soon, making it difficult to account for losses in the divorce. Additionally, retirement savings may not be enough to sustain two households.
The research also found that women who divorced in their 30s were worse off than their male counterparts if they do not remarry. While men have been able to regain their financial situation following a divorce at this age, the study of baby boomer-aged women found that those who divorced in their 30s and did not remarry often struggled financially. Researchers say the reasons for this may vary, and it is unclear whether women of a different generation would face the same challenges.
Each divorce is different and can present unique challenges. Whatever those challenges may be, finances almost always play a role in the post-divorce negotiations. Those facing such conversations or who may be headed to family court typically benefit by contacting an Ontario lawyer for support.
Source: globalnews.ca, "This is the worst timing to get divorced, from a financial point of view", Erica Alini National, April 12, 2018