Total Financial Solutions President/CEO Arif Halaby is talking about the rising trend of divorce among newly retired individuals nationwide, and how that decision impacts finances.

“One of the biggest trends — and not in a good way, necessarily — that we’re seeing a lot of is folks that are seniors are actually getting a divorce after 30, 35 years,” said Halaby. “(Seniors are) the fastest growing group of folks getting divorced.”

Known as the “graying of divorce,” Halaby continued that the decision has a significant impact on the former couple’s financial plans for retirement.

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“You built your financial life in a way to live on 100 percent of your money,” he said. “And now all of a sudden, you’re stuck saying, ‘Um, I guess we’re going to take social security (and) instead of paying one house payment and one electric bill, we’re now going to have to pay two.”

Halaby referred to this as a “killer” of retirement accounts, because it essentially means retirement funds will be divided by two, while expenses will be multiplied by two.

“That means you live on about a quarter of what your life was about,” Halaby said. “So you really have to give yourself, I think, a little bit of pause if that’s going to be the direction that you go on.”

Though the possibility of divorcing down the road can be a difficult subject to even bring up, Halaby noted that more and more people are getting what’s called postnuptial agreements, particularly if they are about to inherit a substantial amount of money or real estate.

“If you are going to be inheriting money — millions of dollars in some cases — then you might want to consider having a postnuptial agreement, which means, ‘If we get divorced, I still get to keep my stuff and you still get to keep yours,” Halaby explained.

Halaby cautioned that this can a “trigger” for some couples, particularly if the relationship has been “uneasy,” and advised always consulting with an attorney, even if it needs to be privately without the spouse.

“We’ve seen financially one little hiccup, and all of a sudden, everybody runs for the exits. Guys, that means that your relationship was probably not that stable to begin with,” Halaby said.

He continued, “It’s a sensitive topic, because for a lot of you, you get to a place in life … when it makes sense to do things that didn’t fit into your plan day one of saying, ‘I love you.’ This is a different world.”

Total Financial Solutions prides itself in helping its clients design a higher income strategy, protect their principal and lock in their gains, all while securing reliable income for retirement.

For a free consultation, contact them by calling 888-99-RETIRE or by visiting their website www.TFSwealth.com.

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Total Financial Solutions – Newhall

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Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning