Three Financial Issues to Be Aware of In Your Illinois Gray Divorce

 Posted on June 22, 2022 in Chicago divorce attorney

While couples who get divorced later in life may avoid many of the challenges related to children and divorce, they still face a challenging set of issues that must be resolved before the divorce can be finalized. The question foremost on the minds of many “gray” adults is whether dividing several decades’ of finances will leave both spouses able to live on their own for the rest of their lives. If you are considering divorce and are nearing or past retirement age, here are three financial considerations to keep in mind as you plan your divorce.

Retirement Accounts Must Be Divided

Any value in a retirement account that was accumulated during a marriage will need to be divided in a divorce. Some spouses do divide their retirement accounts using a Qualified Domestic Relations Order, but other spouses avoid literally dividing the account by negotiating the value of other assets. For example, one spouse may wish to keep the entire value of a marital home and live on their Social Security payments while the other spouse wishes to keep the entire value of a substantial retirement fund. As long as both spouses agree to the terms and the division is fair, an Illinois judge will approve the terms of a couple’s asset division agreement.

Estate Plans Must Be Rewritten

Because a couple’s estate plan is a carefully written instrument intended to pass on a family legacy to children, rewriting an estate plan after divorce can be a difficult or sad experience. However, it is crucial not to delay or avoid rewriting your estate plan as part of your overall divorce process. Failing to promptly address your will could have serious consequences for your estate and can place an undue burden on your executor and beneficiaries.

Alimony May Be Awarded Permanently

Alimony, or spousal maintenance, is sometimes awarded indefinitely after a couple has been married for at least 20 years. Anticipating alimony payments is an essential part of negotiating your asset division and is crucial for future financial planning. Having an experienced financial planner work with you throughout your divorce can help you anticipate your needs throughout retirement so you can plan accordingly.

Speak with an Aurora, IL Gray Divorce Lawyer

Divorcing later in life comes with special considerations that must be addressed to secure an optimal outcome. Get the help you need in your Illinois divorce from the Kane County gray divorce attorney at the The Law Office of Matthew M. Williams, P.C.. Attorney Williams has many years of experience dealing with the specific problems of a gray divorce and can help you create a customized strategy that takes your priorities into account. Call us now at 630-409-8184 to schedule a confidential consultation today.

Source:

https://www.investopedia.com/rewriting-your-will-after-divorce-5193318