Divorce among people over the age of 50 is growing at a steady rate. As people live longer, they realize they don’t want to stay in a relationship that is not happy or fulfilled.
If you find yourself in this situation, there are unique financial aspects of your divorce that you must consider. Preparing now will help you protect your financial health and well-being.
Plan for the divorce
Planning for a gray divorce involves making a list of all your assets and debts. You need to include your income and expenses on this list. Gathering this information early in divorce means you don’t have to spend money for someone else to do it for you.
Determine what your post-divorce budget will look like
If you and your spouse are still working, you go from a two-income household to a single-income household. If you are retired, you will rely on what you receive in the divorce settlement. It’s important to consider what your new costs and budget will be. Looking at this now will also help you determine what assets you are entitled to in the divorce and if you may qualify for alimony payments.
Determine the true value of your assets
It’s important to remember that not all assets are equal. While they may have an equal value now, they probably won’t remain the same once you consider taxes and other factors. For example, having a stock valued at $500 and $500 in cash is very different in the long run. That’s because you will be taxed when it is sold with stock. This doesn’t happen with cash. It’s important to consider all your assets and their true, long-term value.
Protecting your financial future in a gray divorce
Since most people who divorce in their 50s or 60s have been married for several decades, they often have more financial assets and debts to deal with than younger couples. This can make the entire divorce process more complex, which is why it’s important to obtain legal guidance.