I'm 55 and Getting Divorced After 28 Years. How Do I Protect My Financial Future?

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Divorce at 55 after a long marriage is one of the most financially disruptive events a person can face, and the financial decisions made during and immediately after the process have consequences that follow you into retirement. The division of assets, the treatment of retirement accounts, Social Security claiming strategy, and the restructuring of your budget on a single income all require careful attention at a moment when emotional stress makes clear thinking difficult.

This is the situation where a financial advisor who specializes in divorce-related planning provides the most value.

Many people going through divorce assume that a divorce decree dividing retirement accounts is sufficient. It is not. Dividing a 401(k) or pension requires a separate legal document called a Qualified Domestic Relations Order, known as a QDRO. Without a properly drafted and plan-approved QDRO, the retirement account transfer will not be processed, and attempting to transfer funds without one can trigger taxes and penalties.

Retirees With $1M+ In Savings Are Rethinking Their Tax Strategy — Here's Why Some Are Turning To Specialized Advisors

Still on the fence? Coverage gets harder to lock in as you age. Ladder lets eligible applicants apply for term life insurance in minutes — no medical exam required up to $3 million, while you're still eligible.

The IRS guidance on QDROs explains the requirements in detail. An attorney who specializes in divorce and a financial advisor familiar with QDRO mechanics should both be involved in this process.

After 28 years of marriage, you may be entitled to Social Security benefits based on your former spouse's earnings record, even after divorce, provided the marriage lasted at least 10 years and you have not remarried. The benefit available is up to 50% of your former spouse's full retirement age benefit if it exceeds what your own record produces.