Once you’ve been married for decades, you might think that you’ll never have to deal with a divorce. The stark reality is that gray divorce is becoming more commonplace. For individuals who are over 50 years old, the considerations that they have might be a bit different from people who are going through this while they are younger.
Income and financial stability are important when you are divorcing at this age. On average, the household income of women drops around 40% after divorce and around 25% for men. You have to look at your money situation and determine how you can address this when planning to divorce.
The drop in income might mean that you have to make some tough decisions during the property division process because you may not be able to keep all the asset you want. Instead, you need to weigh the full cost of keeping each asset.
Another consideration is the retirement portfolio you have. Pensions and other accounts are part of the divorce, so you must know what has to be divided. Once you figure out whom is getting what, you need to have the court issue a qualified domestic relations order (QDRO) so the plan administrator can transfer the funds with minimal impact to you.
There are also tax consequences to mull. Your attorney and accountant can work together to ensure that the settlement you get is in your best interests. If there are tax implications you need to know about, they can let you know.
Ultimately, your divorce settlement should leave you in the best financial position possible. Remember, you don’t have all the time to rebuild wealth like a younger person would if they were in the same situation.