Clement Law Center - Federal Way Family Law Attorney
Free Initial Consultation
Our office is open. At Clement Law Center, the safety and wellbeing of our clients and employees come first. In response to COVID-19, court hearings and all conferences with client and prospective clients will be by phone. We are not conducting in-person court hearings or meetings. Our staff will often be working remotely during this time. Our office will be checking voicemail and will return client calls as soon as possible. We continue to offer free phone consultations.
We offer a 25% discount to First Responders and Health Care Workers
Quality Representation & Individualized Advocacy You Can Depend On

How ‘gray divorce’ can affect retirement

On Behalf of | Oct 25, 2018 | Divorce

Many Washington residents are counting on their 401(k) plans and other retirement accounts to provide a good living in their later years. However, despite all the work that people can do to save for retirement, life events can throw a spanner in the works. For example, the divorce rate among Americans age 50 and up has doubled in the past 20 years. When people choose to divorce over 50, their retirement assets could be significantly impacted, and they may have fewer years during which to recover from the blow.

Retirement funds can be some of the largest marital assets held by a couple of any age. They become far more significant to people divorcing later in life because the funds will be needed in the relatively near future. In addition, it costs more to pay for two single retirements than it does one joint retirement. Therefore, dividing a retirement fund in half doesn’t leave either partner as well off as they were before they began the process.

When a couple has been married for a short time, the effect on retirement finances could be minimal. However, when a couple has been married for decades, a much deeper division is far more likely. When going through the property division process, it is important to keep the tax status of different assets in mind. For example, a Roth IRA includes post-tax funds while distributions from a 401(k) or a traditional IRA will be taxed later.

Divorce later in life can carry a range of potentially unexpected financial and practical considerations. A family law attorney can help a spouse going through a “gray divorce” reach a fair agreement on a range of matters, including spousal support and asset division.


Start Your Free Consultation

Our Office Locations

Federal Way Office
31919 1st Avenue South, Suite 103
Federal Way, WA 98003

Toll Free:888-351-6779
Phone: 253-954-3351
Fax: 253-815-8458
Federal Way Office Location

Seattle Office
3418 NE 65th St., Suite A
Seattle, WA 98115

Toll Free: 888-351-6779
Phone: 253-954-3351
Fax: 253-815-8458
Seattle Office Location

Bellevue Office
14777 NE 40th Street, Suite 206
Bellevue, WA 98007

Toll Free: 888-351-6779
Phone: 253-954-3351
Fax: 253-815-8458
Bellevue Office Location
FindLaw Network