A divorce is difficult and complicated at any stage of life, but it can be especially complicated when a person is approaching retirement age. There are many complex financial factors to address, especially when one or both parties plan on not working at some point in the near future. Without careful planning and a fair divorce order, a gray divorce, which is a divorce involving two people age 50 or up, can be devastating.
If you are heading for a gray divorce, you may be wondering what you can do to secure your financial future. You will want to be intentional about seeking terms that allow you to have stability into your golden years. There is a lot on the line for you and your long-term interests, but you do not have to walk through this difficult process alone.
Living within your future means
One of the most important things you can do to prepare for your future after divorce is to start living within your means. This requires you to take a look at what your income will be like after divorce, whether you will pay or receive spousal support and what types of expenses you may have. Making those adjustments now can save you a lot of stress and complications after the process is final.
Women often do worse than men in a gray divorce. Statistics indicate that the standard of living for women declines on average by 45%. This is often because women frequently prefer to keep the house while men tend to keep a larger portion of retirement savings. This may leave a woman with a significant financial burden and less money to rely on when she stops working.
Other important financial considerations
If a person approaching a gray divorce wants to keep a valuable asset, such as the family home, it can be helpful to consider the cost of upkeep, taxes and more. If it will end up causing a person to lose money or not result in an income stream, it may be better to sell the asset and split the proceeds.
Another matter you may worry about is your health coverage after divorce. You may get coverage through your spouse’s employer, or you may not be able to afford your current care on one income. You may want to think about this expense when negotiating a final divorce order.
Your future at stake
A gray divorce is costly and stressful, but it is possible to secure terms that allow you to have a strong and stable future. Before you agree to terms, you may want to speak about your specific concerns with an experienced New York divorce attorney.