Boomer / Senior Divorce: I Love and Respect My Spouse But…
The decision has been made to divorce. What is next? Get prepared financially! The National Association of Divorce for Women & Children recent survey states the 41% of all participants say dealing with finances, debt and security were the most challenging parts of finalizing a divorce. Asset division was second and Child Custody came in third.
Here is what you may reasonably expect in the future:
- You are not a legal couple anymore. Your retirement funds could be cut in half. The National Center of Health Statistics stats that most women see a 45% post-divorce drop in their standard of living.
- Health Insurance: one of the most serious problems facing the newly divorced boomer / senior. Many spouses are dependent on the other for health insurance and when people divorce, many times the insurance cost is much larger.
- Retirement and Social Security: when separating funds in regard to retirement assets and social security funds there should be a legal document to assure each partner is awarded the correct amount. Also if you are over 62 and have been married over 10 years, survivor benefits and special rules regarding Social Security will have to be reviewed.
- Alimony / Spousal Maintenance may be awarded after a long-term marriage. In many states the laws have changed and this monetary amount leaves many ex-spouses with much less than expected.
- Legal and financial fees may be significant in large estates but are required to make smart binding decisions in separating assets and property. “Keeping the House” may be an emotional victory, but is it a wise financial decision for you considering your new more limited life style?
You may feel like you are growing older, and are ready to go it alone, but is this the right financial decision for you?
It is sometimes feels but is not easier to say good bye and break the strings of the past. What to think about before you go:
- Your family and friends – do you have their support or will you have to go alone? Usually divorce partners will lose some friends so are you ready to develop a new group of friends with a new life style?
- Is your financial house in order and do you understand the change of life style that is possible?
But if you seek a divorce, contact a knowledgeable attorney who can help get you through this serious time in your life. Right and smart decisions are critical and will govern your life in the future.