Divorce rates are generally on the decline for people in Texas and around the country with one exception: Couples over the age of 50 have the highest divorce ratios with as many as one in four older couples severing the knot these days. What is behind this trend, and what mistakes are these couples making that you should avoid?
Grey divorces can bring financial difficulties
As people live longer, they have more time to form new interests and eventually grow apart. Women, for the most part, are no longer financially dependent on their husbands as their earn their own salaries. However, the cost of divorce can become financially devastating, even if children are grown and out of the house. It costs substantially more to live on one’s own than it does with a spouse or partner, especially in retirement. Even though women are in the workforce, their income tends to drop more than it does for men after divorce. In addition, dividing retirement accounts can be messy and subject to penalties if ex-spouses don’t plan and negotiate carefully.
Divorce mistakes to avoid
In addition to your regular expenses increasing when you end your marriage, you’ll also have legal fees to complete your divorce. To maximize the money you have for your future, avoid these common mistakes:
- Not having an inventory of your assets
- Hanging onto a house you no longer need
- Being unaware of your debts
- Ignoring tax consequences
- Forgetting about health insurance
- Hiding assets from your ex
- Rolling over your ex’s retirement account into an IRA
- Supporting adult children
All divorces require proper planning. If you are thinking about divorce and are past age 50, starting the process early can help save you income in the long run. Working with legal professionals experienced in grey divorce issues can help you avoid common pitfalls and possibly maximize funds available to you in retirement.