Divorcing when older comes with unique financial considerations

On Behalf of | May 4, 2017 | Divorce

The decision to divorce in Mount Holly can come at any age and can happen for a myriad of reasons. While some may think it odd that a couple would choose to split up after decades of marriage, this phenomenon, sometimes called “gray divorce,” is becoming more common. In fact, according to Yahoo, over the last 25 years, the number of people over the age of 50 who have divorced has doubled.

However, when people are that stage of life, their financial priorities may be very different than someone who gets divorced at a younger age. For one, people in their 50’s and 60’s are probably thinking about retirement. They have been planning and saving jointly but post-divorce, may only be left with half of what they were anticipating.

In addition, for many couples who have been married a long time, only one person was in charge of the finances and only one person may have been the couple’s main source of income. Therefore, the spouse who was not involved in the finances may wish to educate themselves about what expenses and income exist. Non-earning spouses may also be eligible to collect social security based on their partner’s income history if the marriage lasted at least 10 years.

Before committing to a divorce, it may be a good idea to first file for a legal separation, points out Reuters. A separation agreement can be good a good tool to ensure that both people’s interests are protected and that their finances remain separate. It can spell out who will be responsible for what and can be precursor to a final divorce settlement.