While the overall divorce rate is decreasing, the divorce rate for people over the age of 50 has increased from 1 in 10 to 1 in 4.
MarketWatch created a checklist to help mitigate the financial risk associated with divorce over age 50. Below is a list of items to consider, prior to filing for divorce:
1.) The family home. Should either party keep the home, can one person alone take care of the costs and potential repairs?
2.) Debts. Get a credit report so that you are both aware of the debts of each spouse.
3.) Lifestyle changes. Both spouses need to be prepared for a scaled back lifestyle. It’s very difficult for individuals to cut back on spending at this stage in their lives, after being accustomed to a certain standard of living for many years.
4.) Health insurance. This could be an issue for a non-working spouse, who will no longer be covered. Affordable health coverage is hard to find.
5.) Tax consequences. Especially with retirement assets.
6.) Social security. The lower earning spouse (if the marriage is 10 years or longer) can opt to receive half of the higher earning spouse’s social security at full retirement age.
7.) Children. Adult children may be unfavorable or hostile, you will want to consider how to help the entire family cope with the divorce.
8.) Caregiving. Who will care for you when you are older? You will need to set aside funds for caregiving expenses.
For more information on divorcing after the age of 50, contact the attorneys at SMDA, P.C.