Divorce Over 50? – Get to Know QDRO
It is heart wrenching to be a spectator of a divorce. Many of us have witnessed one or more of our girlfriends go through the Big D (AKA hell) or, even worse, we’ve experienced it ourselves. No one wants to see a marriage dissolve – the parents, kids or the friends of the couple intertwined in the impending break-up. However, the divorce over 50 trend among couples is becoming a startling statistic. In the last 20 years, the divorce rate among baby boomer couples has doubled.
Divorce can have dire consequences for women and their retirement. During years of marriage, many women have focused on the day-to-day career of raising a family…instead of focusing on building any personal wealth.
If you’ve spent your life taking care of family while your spouse earned the income, here’s something you need to know – QDRO. A QDRO is a “Qualified Domestic Relations Order ” that provides a legal mechanism for receiving a portion of the retirement benefits earned by your spouse during the years of your marriage. It requires the employer to pay the non-employed spouse retirement benefits as a result of the divorce. Learn more here.
For many women, retirement savings may be the main source of income generation after a divorce is finalized. For some, retirement savings are the ONLY source of funds that can generate an income during retirement. Obtaining a QDRO can make the difference between a more secure retirement and a desperate situation in the golden years.
If you find yourself a divorce’s door, ask your attorney about the option of enacting a QDRO into your settlement.
Cathy DeWitt Dunn, President of DeWitt & Dunn, LLC, is the driving force behind Women Money & Power. With decades of experience in the financial services industry, Cathy specializes in helping individuals and families strengthen their retirement outlook with lifetime income solutions not available at traditional brokerage houses. She has helped countless investors start their personal journeys towards a stronger retirement with strategies designed to protect principal, generate retirement income that can’t be outlived, and eliminate market loss.