Dissolving a marriage is challenging emotionally and financially at any age. Divorcing when you are fifty or older is especially difficult for women who have been absent from the work force for years. There are a number of tips on divorce and finance for women who are 50 and older. When ending your marriage later in your life, it is important to plan and protect yourself for future finances.
Studies show that one in ten people who divorced in 1990 was 50 or older as compared to one in four in 2010. Government statistics also indicate that when a marriage ends the income for men drops by 25 percent and almost 50 percent for women. At this stage in life retirement is more costly for an individual as opposed to a couple. The cost of living is about fifty percent higher for singles than it is for couples.
Additionally, there is much less time for recovering financially from the consequences of a divorce in later life. The life expectancy for women is increasing which means that they will be living longer with much less money. There are some ways that women can protect their financial future if they become single again in their older age. Following some guidelines will make being single easier.
It is important to prepare when divorcing later in life. You might want to hire a financial planner to work with your legal counsel. This team effort can make settlement decisions easier and ensure you have a comfortable financial future. It is vital that you make copies of important papers like trusts, wills, loan documents, tax returns, credit card statements, car registrations, insurance documents, and loan paperwork.
It is very important to know the monthly bills. Often a hidden financial obligation can be an unwanted surprise for couples. This is especially true if you live in a community property state. In states that have community property laws the spouses are responsible for half of the debt of their spouse. Even if you do not live in a community property state you can be held jointly responsible for any debt incurred during the marriage. Obtaining a complete credit report will help eliminate any surprise.
It is also a good idea to inventory all property in your house. Take pictures of all valuables that you have. This property may be jewelry, art, or sentimental items. Hiding assets is not unusual for folks going through a divorce. Some of these items can be used as leverage when agreeing on a property settlement.
There are some things that you may not want to hold on to such as the house. A house has ongoing expenses and the future value is not necessarily assured. It is a good idea to investigate the financial impact of keeping or selling the home. If you are going to receive money from a spouses IRA make sure you get the facts about tax and penalties.
Check into the social security benefits of your spouse. You must meet specific conditions to be eligible to collect an ex spouses benefits. Finally, make certain that you consider health coverage.
Studies show that one in ten people who divorced in 1990 was 50 or older as compared to one in four in 2010. Government statistics also indicate that when a marriage ends the income for men drops by 25 percent and almost 50 percent for women. At this stage in life retirement is more costly for an individual as opposed to a couple. The cost of living is about fifty percent higher for singles than it is for couples.
Additionally, there is much less time for recovering financially from the consequences of a divorce in later life. The life expectancy for women is increasing which means that they will be living longer with much less money. There are some ways that women can protect their financial future if they become single again in their older age. Following some guidelines will make being single easier.
It is important to prepare when divorcing later in life. You might want to hire a financial planner to work with your legal counsel. This team effort can make settlement decisions easier and ensure you have a comfortable financial future. It is vital that you make copies of important papers like trusts, wills, loan documents, tax returns, credit card statements, car registrations, insurance documents, and loan paperwork.
It is very important to know the monthly bills. Often a hidden financial obligation can be an unwanted surprise for couples. This is especially true if you live in a community property state. In states that have community property laws the spouses are responsible for half of the debt of their spouse. Even if you do not live in a community property state you can be held jointly responsible for any debt incurred during the marriage. Obtaining a complete credit report will help eliminate any surprise.
It is also a good idea to inventory all property in your house. Take pictures of all valuables that you have. This property may be jewelry, art, or sentimental items. Hiding assets is not unusual for folks going through a divorce. Some of these items can be used as leverage when agreeing on a property settlement.
There are some things that you may not want to hold on to such as the house. A house has ongoing expenses and the future value is not necessarily assured. It is a good idea to investigate the financial impact of keeping or selling the home. If you are going to receive money from a spouses IRA make sure you get the facts about tax and penalties.
Check into the social security benefits of your spouse. You must meet specific conditions to be eligible to collect an ex spouses benefits. Finally, make certain that you consider health coverage.
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