There are challenges that come with any divorce. But when one decides to divorce later in life, especially after the age of 50, there are some important things to do to be better prepared. Ensuring financial security after a gray divorce can be particularly difficult because of joint property, retirement funds and other assets that have accrued throughout the marriage. It’s helpful to take some time pre-divorce to consider finances of both parties to simplify the divorce process.
Consider all assets and debts
The first step in being financially prepared for divorce is to have a list of assets and debts. The incomes of both parties and their regular expenses will also be considered during the divorce to determine spousal support if it’s appropriate for the circumstances. Assets should include real estate, cash, investments, life insurance, and other items of significant value. Debts include anything owed by one or both spouses. A tax return can be used to show income and the bank account withdrawals can be used as a guide to indicate most expenses.
Post-divorce financial adjustments
It’s not uncommon for both parties to see a significant change in their financial situation after a divorce. The best way to adjust is to create a new budget and come up with a financial plan that embraces those changes. A sound post-divorce financial plan should include considerations for housing, everyday costs, household bills and investments.
Divorcing after the age of 50 can have a different set of challenges. Many couples may own multiple properties, have considerable investments, and be in possession of other valuable assets. Those who are going through a gray divorce in New Jersey can benefit from speaking with an experienced divorce attorney for legal advice based on their specific financial situation.