Common Mistakes to Avoid When You Are Going Through a Gray Divorce

 Posted on December 27, 2019 in Gray Divorce

Divorce rates are often changing and vary depending on the source of your information. Although the general divorce rate is anywhere between 40 and 50 percent, one statistic that can be agreed upon is that the divorce rate for Americans over the age of 50 has doubled since the 1990s. Gray divorce, or divorce that takes place when someone is 50 or older, can be devastating for many people, particularly because gray divorces often end marriages that can be decades long. Spouses in these cases have special considerations that should not be forgotten when going through the divorce process, especially related to financial matters. If you are going through a divorce later in life, here are a few mistakes to avoid:

Not Understanding Your Finances

In any marriage, it is not uncommon for one spouse to have a better understanding of the couple’s finances than the other. While this type of arrangement might work during a marriage, it will certainly not work in a divorce. If you are the partner whose knowledge of the family’s finances is unclear, you need to get a better picture of what your finances actually look like. Review all of your bank accounts, investment portfolio, and any debts that you owe before you begin dividing your property.

Clinging to the Family Home

There are many reasons why a spouse would want to keep the marital home after a divorce. For some couples, the thought of moving their children out of the family residence is unfavorable. For older couples, the sentiments attached to the home may cause them to hold on when their finances say they should let go. First, get an accurate appraisal of the home’s worth. Then, figure out if you can afford to keep the home on your own.

Ignoring Your Retirement Funds

If you or your spouse has a retirement plan such as a 401(k), you will want to make sure you get a qualified domestic relations order (QDRO) to protect your retirement assets. Retirement accounts can be tricky to deal with, since they are subject to many rules and tax penalties if you attempt to access the money early. A QDRO can spell out the terms of the distribution, ensuring that you will be able to access the retirement money when the time comes.

Contact a Kendall County Divorce Lawyer

It can be devastating for any couple to come to the realization that their marriage is over, but stakes can be particularly high during a gray divorce. There are serious financial implications that could result from a divorce after middle age. At the Law Office of Matthew M. Williams, P.C., we know how intimidating it can be to move on emotionally and financially. Our skilled Yorkville divorce attorneys can guide you through the legal process and help you plan for a secure financial future. Call our office today at 630-409-8184 to schedule a consultation.

Sources:

https://www.investopedia.com/personal-finance/mistakes-avoid-when-divorcing-over-50/

https://www.newretirement.com/retirement/divorce-after-50-gray-divorce-retirement/

https://www.psychologytoday.com/us/blog/complicated-love/201809/7-key-facts-about-divorce-after-long-marriages