Divorce at any age can impact your life severely, but divorce after 50, or gray divorce, comes with additional concerns. Older residents of Tennessee should go into the divorce process prepared to protect their financial future by avoiding common mistakes people make.
Preparation begins before the divorce process
Once you know that your marriage is headed towards divorce, you should begin preparing. One of the major mistakes people make is not being proactive. In many cases, older couples have set roles which often means that one spouse has a better grasp, sometimes total grasp, on the couple’s finances. To prevent financial complications, you can begin doing several things, including:
- listing all your joint assets and debts
- figuring out the true value of each asset
- gathering documentation related to these assets and debts
- finding copies of any prenups or postnups
- getting copies of insurance and retirement policies.
Be realistic about the present and the future
Another common mistake people make during gray divorce is not taking a realistic account of their present and future. To avoid this, it is important to evaluate your marital standard of living and figure out if you can continue to have it. You should also make a budget for life post-divorce and consider what you might need to give up to protect your financial situation. This might mean having to give up the family home, for example, to move into a more affordable although smaller space.
Do not forget to think about retirement
Overlooking how important retirement is and how to pay for it is another common mistake. People involved in gray divorce need to make sure they know how much retirement accounts are worth, how they will be divided during divorce and what the tax impact will be based on their actions.
You can divorce after 50 and still protect your financial interests. Make sure you prepare for the process, negotiate fairly and maintain a realistic outlook.