Experiencing a divorce at any age can be stressful and complicated. In addition to the mental and emotional toll a newly divorced person must undergo, there are also various financial consequences to consider. This is especially true if you share financial accounts with your ex. For this reason, when someone experiences divorce after 50, the financial implications are often more complex and difficult to navigate.
Whether you are experiencing divorce after 50, divorce after 60, or divorce when you are already well into retirement, you need to consider the impact this life transition will have on your financial planning.
It is not always easy to see a divorce coming. In some cases, you may know months or even years in advance, and in other cases, you may find out that you are getting divorced when you are served with the paperwork. Either way, it is best to know what financial planning after divorce actually looks like.
Typically, couples who are married and then divorce after 50 have some shared financial accounts and assets. This might include bank accounts, credit cards, mortgages, property, retirement accounts, and investments. As a result, a divorce can immediately set up an uncomfortable situation in which two people have two distinct claims to the same assets. When this happens, lawyers, divorce planners, financial advisors, and (in more complex cases) even judges may need to step in to decide how the wealth is distributed.
Due to the complexities of financial planning after divorce, it is best to seek out the advice of a professional. If you attempt to manage everything on your own, you could end up losing a significant portion of your assets and savings. That said, there are a few steps you can take to help manage your finances before and after a divorce.
As previously mentioned, you will not always have a lot of advanced notice before a divorce. For this reason, you should always hope for the best and plan for the worst. Nobody wants to get divorced, but divorce is a reality that roughly half of all married couples will face. So, even if you plan on staying with your partner for life, you should take some steps to protect yourself and your finances from a divorce.
Many couples sign a prenuptial agreement to help protect against financial battles in the future. If you are already married, you also have the option to sign a post-nuptial. However, you may not have the consent of your partner to proceed with this decision. In this case, you will need to take certain actions on your own to protect your wealth. Generally, the best course of action is to keep finances separate and ensure that you have a legal claim to the assets (property, businesses, items of value, etc) that belong to you.
If the divorce proceedings have already begun, it is a lot more difficult to make changes to protect your wealth. For this reason, it is best to contact a lawyer and financial advisor immediately. This will ensure that you can move on from your divorce with a sound financial plan for the future.
Are you newly divorced or going through a divorce after 50? Do you need divorce planners or a divorce financial advisor to help with your financial planning? For more personalized financial advice before or after a divorce, be sure to contact Merit Financial Advisors today!