What Older Couples Should Know When Filing For a Gray Divorce
More couples over 50 are experiencing ‘gray divorce’ unlike the past.Older couples are starting over after a long marriage.
Divorce is something that will cause a seismic shift in your life. After divorce, you will need to change the way you live your life as there will be many implications financially.
This is particularly the case if you end up keeping the house in your settlement or you win custody over your child. When adjusting to a new way of life you will soon notice that the bills will no longer be split between two people, and you may not have the same assets you once did such as access to a car if it was your partner’s.
Divorce is a time of life that will truly test you, and today we want to talk about how you can cope with the financial implications that go along with it.
When you have been living life with another soul for a long time, you will get into an easy routine of paying bills and saving for your future, and your finances have likely been stable and shared for a long time. However, when that person is gone, you need to re-assess what you have and what you can afford.
When divorce hits, make sure to go through your personal finances and see exactly what you have to your name. You may no longer be able to afford a mortgage for a huge house and this will mean selling and downsizing to something more manageable. Budget very carefully and start to consider everything you’ll be paying for over the course of a month. Be sure that you get to a point where your incomings are more than your outgoings and this will ensure you don’t face real issues in the future.
One of the most common ways to allow both parties in the divorce to move on with relative ease is to sell the family home and divide the proceeds to fund new living spaces for each. This is often the best thing you can do from a financial standpoint because you will immediately gain a sum of equity that you can put towards a new and more affordable home for yourself. Things such as joint savings accounts will also be divided up so you might end up better off than you thought when all is said and done.
As much as we try to avoid it, most of us at some point in our lives end up in debt. Debt is a difficult thing to deal with and of course, when you are paying it off alone it can be even more challenging. When you get a divorce there will be several common types of debt you need to think about:
Make sure that you track all of these down as soon as you can and arrange with your ex-partner how you will tackle these together. If they are not on civil terms with you, this is something to bring up to your attorney for the court to finally decide.
Divorce is hard for everyone involved and it is important for you to realize that you aren’t being thrown into a shark tank alone. There are many people in your life as well as throughout the proceedings who can support you and offer advice. For example, your divorce attorney will be an invaluable help to you because they will be able to offer advice and also ensure that you the financial support you need through the settlement.
More couples over 50 are experiencing ‘gray divorce’ unlike the past.Older couples are starting over after a long marriage.
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The best way to improve your chances of getting a fair share of the retirement fund during divorce is to work with a family law attorney and/or a qualified CPA.
Divorce finances is a broad category. Division of marital property assets is customary in divorce cases. However, there is also retirement, the home sale and more to consider.