Mistakes to avoid in a grey divorce

On Behalf of | Jun 29, 2017 | Divorce

Divorcing later in life comes with a different set of challenges than for couples that divorce under the age of 50. People that divorce at a younger age have time to rebuild retirement accounts, investment portfolios, and their lives in general.

Now that you are considering divorce with retirement right around the corner, you may be wondering how you will recover. You and your spouse will have to divide the wealth you have accumulated during the course of your marriage. Even now, you may be making adjustments in your life, and after your divorce becomes final, your lifestyle may have to change in significant ways. Fortunately, making the right moves now can make a difference when it comes to starting over.

If you are over 50 and considering divorce, it is important to take steps to protect your interests. Choosing the right legal help could mean the difference between a strong settlement and one that leaves you struggling. An experienced divorce attorney can help you fight for your rightful share of marital property. Read further to find out more about mistakes to avoid in a grey divorce.

Not accounting for taxes

Tax-deferred retirement accounts are often some of the highest value assets that couples possess. When it comes time to divide your marital property, it is important to remember that the value listed on the account statement of your 401(k) is not the value you will receive. Since the money in the account is not taxed until it is withdrawn, the true value of the retirement account is often much less than the amount reported on the statement. This means that you should adjust the value of the account to reflect the future taxes that you will have to pay on it when you are calculating your total marital assets.

Depending too much on alimony

If you expect alimony to be a part of your divorce settlement, it is important to remember that you will not receive the payments indefinitely. The older you and your future ex-spouse get, the likelihood increases that he or she may die, leaving you without the monthly income you depend on. Your attorney may recommend taking out a life insurance policy on your spouse to ensure you have a source of income if your ex-spouses passes.

Neglecting the kids

While you and your spouse’s relationship may be over, there is one thing that the two of you probably agree on: protecting your children’s futures. You probably intend to pass your assets to your children when the times comes. However, there is always a chance that they may divorce sometime in the future. In order to keep the assets in the family, consider forming a trust to protect the property from going to someone other than your children or grandchildren.

If you are over 50 and considering divorce, you should take certain steps to protect your fair share of marital property. It is important that you avoid certain mistakes and make the right moves so that you do not find yourself suffering an economic hardship. That’s why it’s important to choose a divorce attorney with experience in grey divorce cases.