Everyone has to make adjustments after a divorce, but those over the age of 50 face some unique issues.
How do you develop and maintain a secure financial future following a later-in-life divorce?
If your spouse handled most of the marital finances, now is the time to become more knowledgeable, understanding how much money was coming in and how much was going out. You will need to make a list of assets and debts as you approach the property division phase of your divorce, and that serves a dual purpose. First, you will have a guide to understanding your current finances. Second, you can use the information to create a budget for your post-divorce life.
Given that the source and amount of income you receive following the divorce will change, so will your lifestyle. For example, you may have to downsize to a smaller home and learn to live on a budget that is tighter than you had during your marriage.
As an older person, you will likely face employment issues after the divorce. If you are already employed, you may have to work longer than anticipated before retiring. If you are not working, you may want to think about finding a job you would enjoy. Even if you receive spousal support, a second income stream represents additional financial security.
Remember that tax consequences surface with the division of assets during a divorce. Before you agree to the terms of a divorce settlement, make sure you understand the tax implications. Considering your financial picture from every angle will help you enter the next stage of your life with greater confidence.