Studies show that about 1 in 4 divorces involve couples older than 50 years old. When it comes to older couples divorcing, especially if they have been married for many, many years, there are several financial considerations they should acknowledge when going through the divorce process.
If you and/or your soon-to-be-ex-spouse are close to retiring at the time of the divorce, it can be difficult to rebuild your retirement investments after it is finalized. Before signing the final papers, get some things in order:
– Make sure to identify all retirement assets that were earned during the marriage from all of your former and current jobs. Evaluate all individual retirement accounts or other annuities and research the benefits that each plan will provide.
– Look at if you or your spouse is able to earn any additional retirement assets. The party who earns less should receive more retirement or other assets in the divorce.
If you no longer have any kids living at home, it may seem like a good idea to sell the family home. Research if the equity for the property can be split, which can be an important discussion especially if you are ready to retire and move somewhere else.
Many couple over 50 years old may still be working, but in some cases one spouse may not have worked for a while and instead was responsible for home and childcare. If you are the spouse that has been supporting your other half for a long period of time, you can expect to have to pay spousal maintenance. These payments may be permanent or may end once you retire.
It’s important that each spouse has medical insurance after the divorce. If one spouse received the insurance from the other, it is possible that they continue their coverage through a senior benefits program. Another option is to look into coverage via the Affordable Care Act.
It’s likely that older couples may have children in college, so it is important to determine the responsibilities of each parent when it comes to paying college costs. Look at the assets of yourself and the child. An issue for older children could also be which parent is responsible for paying for a wedding, which is not covered by any divorce statute.
For more information regarding divorce and family law, look to the Sampair Group. Contact our Glendale divorce attorney’s at www.sampair.com.