Ending a marriage can have numerous emotional implications. Separating from your spouse much later on in life, however, carries additional challenges, and often involves serious issues regarding finances. Getting a divorce after 50 or older is trickier because of a looming retirement. The assets or debts you need to take care of and your retirement plans can add up and cause quite the headache.
The Division of Assets
M-S-Lawyers.com agrees that divorces later in life are significantly different from separating earlier on because of the financial burden. The division of property for the former often ends up concentrating on the evaluation of assets for the income potential post-divorce. It is important to know all about the age-related aspects of shared assets or wealth, as these will likely have intrinsic value.
The Case of Hidden Debt
This is common surprise for many divorcing couples. Hidden debt can be a burden, especially if you live in a state with strict property laws. Even if the debt is not in your name, you may also be responsible for some of your spouse’s debt. Experts say that is better to obtain a full credit report before filing a divorce. This ensures that no surprises come up over the course of negotiations.
Interests of Children and Grandchildren
Existing estate plans that grant assets to children and grandchildren may clash during divorce. This may also affect your taxes and the immediate generation. It is important for couples to determine how the divorce will impact their children to minimize the damage to existing plans. This is especially true when handling or deciding on inheritance.
Importance of Balanced Portfolio
Couples that file for divorce later on in life often overlook the importance of a balanced portfolio. In most cases, these separating couples have a tendency to focus on receiving a certain asset and forgetting most other things. It is still important to aim for a balanced portfolio, which is also relevant in divorce and retirement planning.
Legal advice is always necessary if you are over 50 and planning to get divorced because the case will likely involved unique financial aspects. The biggest issue is that there is less time to recover financially, which can also affect the other aspects of divorce.
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