If you are older, 50 or above, and are going through a divorce, you’re going through what’s called a gray divorce. There are special considerations to keep in mind if you are going through a gray divorce, because you need to focus on your financial stability as you approach or continue in retirement.
Gray divorces are unique, because there are particular factors that affect older people more than younger people. For example, if you divorce at 60, your retirement accounts and assets could all be affected. You may end up working longer than expected instead of retiring at the time you planned for.
Keep in mind that your asset division decisions have an impact
You have to remember that at this part of your life, it may not be as easy to recoup the losses you could have during a divorce. Even if your marital assets are divided 50-50, you will walk away with less than you have now.
It’s very important for you to be able to show which assets are yours as well as which assets are not. It is beneficial to produce receipts or other information to show if you obtained an asset before marriage or if it was purchased with an inheritance. Doing this could help you maintain more of your own separate property.
Keep an eye on your retirement
Another important factor to consider is how your retirement could be impacted by your divorce. Depending on your role in your relationship, you may want to seek out alimony or look into ways to protect your retirement accounts. It may be beneficial, for example, to give up some more liquid assets in exchange for leaving your retirement untouched.
Age matters in gray divorces. Younger divorcees in their 50s will have more time to make up losses compared to those in their 60s or 70s. It’s essential that you go over your property and find out all that you own as well as determining if you owe any debts. Then, you need to start looking at how to preserve assets for yourself and limit your own liability.