‘I don’t own a home’: I’m 62, unemployed and have $1.5 million for retirement. Can I afford to divorce my husband?

Retirement planning at age 62, especially without home ownership and facing a divorce, requires a robust financial strategy. With $1.5 million in retirement assets, the primary concern is converting this capital into a sustainable income stream while factoring in independent living costs. Investors should consider how these funds are allocated, whether they're in tax-deferred accounts like IRAs or 401(k)s, or taxable brokerage accounts, as this impacts withdrawal strategies and tax liabilities. The divorce settlement will be a critical determinant of financial viability. Understanding state laws regarding asset division and potential alimony or spousal support is paramount. If the $1.5 million represents shared marital assets, or if a significant portion could be allocated to the spouse, the remaining sum might be considerably less. This underscores the importance of legal counsel to ensure an equitable division that supports individual post-divorce living expenses, which will likely include new housing costs. Moving forward, a detailed budget outlining monthly expenses, including rent/mortgage, utilities, healthcare, and discretionary spending, is essential. Working with a financial advisor to create a withdrawal plan from the $1.5 million is crucial. This plan must account for market volatility, inflation, and longevity risk, ensuring the capital lasts throughout retirement. The next step involves securing a clear understanding of the divorce settlement's financial implications and adjusting the retirement income strategy accordingly.