Older adults who end their New York marriages face a complex financial landscape. They tend to share many assets and savings with their spouses that will require splitting. You will have to rework your retirement plan because the divorce may cut your retirement savings in half. You may also have college savings plans to consider so that your maturing children do not lose access to these funds in the divorce.
Create a complete picture of your finances
Both spouses must disclose their assets and debts to settle the divorce. Undertaking this task involves collecting these documents:
- Bank account statements
- Loan records
- Investment account statements
- Life insurance policies
- College savings accounts
- Retirement accounts
- Current credit report for both spouses
As you begin to discuss how to split assets and debts, keep a careful eye on your future. Your income is about to be cut in half at the same time that you need to start paying for a separate household. If you owned a home with your spouse, you will need to make a decision about selling it or giving it to one spouse. Although keeping your home may be tempting, you must consider if you will have the income to maintain and insure it and pay the property taxes.
Social Security benefits
The Social Security Administration grants benefits to formerly married people whose marriages lasted 10 years or more. You have a right to collect benefits based upon your former spouse’s earning history if you meet certain conditions.
Investment accounts
You or your ex-spouse may have a stock portfolio. You should speak with a tax preparer before liquidating securities to divide their value. Your taxes could be lower if you divide the stocks instead of selling them and dividing the cash.