People over the age of 50 are divorcing at record rates. While there are several reasons attributed to these late-in-life divorces, it’s important for divorcing couples to realize they may face unique financial issues along the way.
When you have been married for decades, you accumulate more property and have more intertwined assets and liabilities than younger couples. Find out more about financial issues in a gray divorce here.
Complex asset division
At this point in life, you probably have a complicated financial situation. At this point, it’s a good idea to consult a financial adviser to help you understand how asset division works regarding retirement funds and other elements. They can also help you keep your marital assets separate from your personal assets.
Social Security benefits
Social Security benefits are another factor that must be considered in gray divorce. In some situations, it’s more beneficial for a spouse to draw off the higher-earning spouse’s benefits. To do this, though, you must meet specific requirements. Understanding your entitlements – and any limitations – can help you plan your financial future.
Health insurance considerations
If you haven’t turned 65, you won’t qualify for Medicare, and you will not be covered by your spouse’s employer-sponsored health insurance once you divorce. If this happens, you must plan for the gap years until you will qualify for Medicare. It may also be a good time to consider long-term care insurance since you may have thought your spouse would be your caregiver if the time ever came.
Planning for your financial future after a gray divorce
If you are divorcing at an advanced age here in Aldie or elsewhere in Virginia, there are unique financial aspects of divorce you need to keep in mind. Knowing your legal options and rights in this situation will help ensure you are protected in the future.