Divorcing After 50? Don’t Let a Bad Situation Derail Your Retirement Plans

Divorce is difficult at any age, but if you’re over 50 and nearing retirement, the financial
impact can be even more significant. Suddenly, the roadmap you’ve been following —
shared savings, retirement income projections, long-term tax strategies — gets upended.
But while the emotional and financial toll is real, this doesn’t have to ruin your retirement.
If you’re facing divorce in your 50s or 60s, now is the time to take control and rebuild your
plan. Here are five essential steps to protect your financial future:

1. Start Fresh with a New Financial Plan

Your old retirement plan was built for a joint future. Now that you’re navigating this new
chapter alone, your priorities, cash flow, and investment strategy must shift. You need a
revised plan that reflects your new income, expenses, Social Security claiming options,
and long-term goals. Don’t try to reuse your old plan — it likely no longer fits.
A good financial planner will help you reevaluate everything: retirement income sources,
housing, health insurance, and your timeline for retirement itself. The sooner you rebuild
the plan, the more confident you’ll feel moving forward.

2. Work with a New Adviser (or Get a Second Opinion)

If you shared a financial adviser during the marriage, now may be the time to find your own.
Even if that adviser is ethical and well-meaning, there’s often an unspoken loyalty to one
party — or at least a shared history that can complicate objectivity.
Find an adviser who’s working solely in your best interest, understands the nuances of
divorce, and can act as a fresh set of eyes. At a minimum, get a second opinion from an
adviser with experience in post-divorce financial planning.

3. Update Your Tax Plan — Everything’s Changed

Divorce affects how you’re taxed on Social Security, retirement withdrawals, capital gains,
and more. Many people don’t realize how drastically their tax situation shifts when they
move from married filing jointly to single — or worse, head of household without
dependents.
A proactive tax planner will project out your taxes for the next 10–20 years and identify
ways to reduce your tax burden. Whether it’s optimizing Roth conversions, adjusting
withholding, or managing IRMAA thresholds for Medicare, every dollar saved matters more
now.

4. Reassess Retirement Accounts and RMDs

Dividing assets doesn’t just mean splitting balances — it also affects how and when you’ll
need to take Required Minimum Distributions (RMDs), how much income you’ll need to pull, and which tax buckets your money sits in. Post-divorce, you may find yourself with
more tax-deferred dollars than you expected or without the Roth balance you thought
you’d have.
Get clear on what you own, how it’s taxed, and what income it will generate. From there,
you can build a sustainable withdrawal plan that minimizes taxes and maximizes peace of
mind.

5. Don’t Make Decisions in Isolation

Divorce often leads to financial isolation — especially for the spouse who didn’t handle the
money during the marriage. It’s easy to make rushed or emotional decisions that seem
right in the moment but carry long-term consequences.
You don’t have to go it alone. A financial planner who understands the retirement and tax
issues specific to late-life divorce can guide you through the transition with confidence.

Conclusion
Divorce at 50 or beyond is hard — but it doesn’t have to destroy your retirement. With a
new plan, a qualified adviser, and a strong tax strategy, you can turn a painful ending into a
smart new beginning.
If you’re navigating this transition, let’s talk about how to rebuild your retirement plan the
right way.

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Kurt Supe, John Culpepper and Brian Quick offer securities through cfd Investments, Inc., Registered
Broker/Dealer, Member FINRA &SIPC, 2704 South Goyer Road, Kokomo, IN 46902, 765-453-9600.
Kurt Supe, Andrew Drufke and Brian Quick offer advisory services through Creative Financial
Designs, Inc., Registered Investment Adviser. Creative Financial Group is a separate and unaffiliated
company. The CFD Companies do not provide legal or tax advice.