Virginia residents might be confident that they can handle their finances no matter what happens to them. However, a new survey from TD Ameritrade found that this may not necessarily be the case. The company surveyed 2,000 adults between the ages of 40 and 79 who had at least $25,000 that they could invest. It found that 87% of respondents were sure that they would be financially secure if their partners passed away or if their marriages ended.
Despite that confidence, 41% of respondents acknowledged that they didn’t have a plan in place for managing their money if either of those events took place. Data shows that the divorce rate for those 50 and older doubled between 1990 and 2015, and individuals may experience a variety of financial challenges if their marriages come to an end. It might be possible to prepare for those challenges by creating a prenuptial or postnuptial agreement.
Of respondents who had gotten a divorce, 35% said having a prenuptial agreement would have made ending their marriages easier. Those who get divorced later in life could also have to put off retirement or go back into the workforce to meet their financial needs. Among the respondents who had gotten divorced, 40% said that it changed their retirement plans. Buying life insurance might protect against financial woes in the event that a spouse passes away.
The use of prenuptial agreements may make a divorce easier to finalize in a timely manner. Assuming that the terms of the agreement are valid, they will be used to determine how property is split or if a person is entitled to alimony. While a judge will have to approve a child custody or visitation plan, ending a marriage amicably may help parents resolve those issues relatively easily.