Three Steps To A Successful Grey Divorce | Grey Divorce Lawyer
Getting divorced at any age is difficult. However, those who are going through divorce later in life need to be aware of the fact that their divorce is different than those going through a divorce in their twenties.
A divorce in your fifties can have a major impact on your future financial security. Without a careful plan, those going through this process could find themselves coming up short financially during retirement.
Is divorce over the age of 50 uncommon?
Baby boomers are at it again. The generation known for bucking conventional norms has altered how we view divorce. Divorce after the age of 50 is no longer uncommon. In fact, it is so common that it has its own term: grey divorce.
How can I better ensure I set myself up for a fresh start after divorce?
Those who find themselves going through a grey divorce can take proactive steps to mitigate the risk of a settlement that does not properly account for upcoming retirement. Three steps that help include:
- Gathering information. It is wise to put together a file of all your assets and debts. Keep track of retirement accounts, investments, business interests, savings accounts and personal property. Make copies of recent tax returns. If you are in a relationship with a high net-worth, it may also be a good idea to have a forensic accountant review your situation. The analysis may reveal assets that you were not aware existed. You may be entitled to a portion of these assets in the divorce settlement.
- Looking at the home logically. It is very common to be emotionally invested in a family home. It is easy to understand why it would be hard to give up a place with so many memories. However, it is wise to take a step back from this emotional attachment and look at ownership of the home logically. When determining whether or not to keep a family home it is important to account for all the costs associated with ownership. This includes upkeep and maintenance as well as mortgage payments. In many cases, it is best to sell the home and find a place to begin anew.
- Keeping taxes in mind. It is important to remember that pretty much anything involving money will bring in the Internal Revenue Service (IRS). As a result, tax implications should be taken into consideration before finalizing your divorce settlement.
These three steps are a small part of the overall divorce process, but they can help to better ensure that you are set up for a successful start after the divorce is finalized.