Study Says Divorcees near Retirement Age Aren't Prepared

For nearly two decades, Roger Stadtmueller has served as the managing partner with Stadtmueller & Associates, a CPA firm located in Spokane, Washington. In conjunction with his day-to-day accounting practice, Roger Stadtmueller is a longtime member of the American Institute of CPAs (AICPA).

According a recent survey conducted by AICPA, 75.6 percent of people who are divorced and old enough to retire are not adequately educated about their personal financial lives. Over the last 27 years, the divorce rate among retirees has increased twofold, which makes the importance of understanding how divorce impacts their financial situation paramount.

The survey also shows that women tend to have better financial habits post-divorce than men. With nearly twice as many women as men finding employment after a divorce, women also are nearly 2.5 times more likely to bolster their retirement savings than men.

AICPA Personal Financial Planning Executive Committee member Tracy Stewart says couples tend not to think about what would happen to their finances in the event of a divorce. Because dividing assets can be a complex venture, it’s important that individuals, especially those nearing retirement age, take these issues into account.