The dissolution of marriage at any age can be unnerving and ultimately affect one’s thought process. Divorce is never easy and often causes increased stress and can take an emotional toll on a person. Being well organized and researching the state laws as they apply to divorce can help prepare for the often-tumultuous times ahead. In California, divorces over age 50 have doubled in the past 25 years.
Create an inventory of assets and identify which ones are held jointly, and be aware of any inheritances received over the course of the marriage. Make a list of all employers both present and past for both parties, and inquire about pension plans, profit sharing and stock options. It is not unusual for employer-funded accounts to be forgotten. Be sure to change the beneficiaries on accounts and property titles, which can sometimes go undetected.
If alimony is awarded and the ex-spouse becomes disabled or loses his job, will there be money to honor the agreement? Consider a one-time settlement versus a monthly installment to keep from suffering breaks in monthly alimony payments if the ex-spouse falls on hard times. Life insurance could mean the difference between continued stability and a financial catastrophe in the event the ex-dies. One suggestion is to have an insurance policy arranged during the divorce and be named both owner and beneficiary to have control over the insurance contract.
There is nothing easy about divorce after age 50. It is a major change in one’s life, but research and careful preparation can make the experience less daunting. In California and other states, an astute divorce attorney can offer insight and help explain the divorce process and make the transition easier.
Source: marketwatch.com, “7 ways to manage financial pitfalls during a late-in-life divorce“, Melody Juge, Feb. 9, 2018