Going through a divorce at any age poses its difficulties. However, the closer a person is to retirement, the more difficult recovering financially from ending a marriage may be. Of course, that does not mean that you need to remain married in order to remain financially stable. It does mean that understanding financial mistakes to avoid could work in your best interest.
One of the biggest reasons that divorcing after the age of 50 can take such a toll is that individuals of this age typically have fewer working years left ahead of them than younger individuals. As a result, you may not have the ability to rebuild a retirement account divided due to divorce or have other important funds available. Fortunately, being smart about your marriage dissolution decisions, particularly those relating to property division, could make a big difference.
What should you consider?
Divorce poses a lot of questions, and often, you may feel as if you do not have a solid answer. This feeling is understandable as many of these decisions will have to take future details into account, and the future is not easily predictable. However, some details you could take into consideration to help with these decisions include the following:
- The many financial implications of keeping the marital home, including those relating to the remaining mortgage, insurance, repairs and maintenance, and other costs
- The amount of marital debt involved and how you could negotiate for a fair portion to handle
- The tax consequences of keeping certain assets or of moving funds into or out of retirement accounts
- A realistic budget for living on a single income
- Possible intangible assets, like stocks or future pension payments, to which you may have a claim
Of course, depending on the specifics of your marriage, your and your spouse’s employment, your marital assets and more, you may need to take other important details into account as well. Remember, each case is different, and working with your unique circumstances may mean navigating uncertain areas.
Though your case will differ from others, gaining information on how to handle divorce in California may help you determine how your personal details will affect your case. In order to ensure that the knowledge you obtain is applicable and accurate, you may wish to utilize local legal resources for information.