As the rate of so-called gray divorce continues to rise, it’s important to know the common mistakes that can be made during this process and how to avoid them. Divorce after the age of 50 leaves individuals with less time to recover financially. Refrain from making these financial and emotional mistakes if you are headed toward a divorce.
Financial Mistakes In Divorce Over Age 50
Protecting assets is usually a primary area of concern for any adult heading toward a divorce. By age 50, you have undoubtedly spent a lifetime accumulating your money and property. Try to avoid these common mistakes when it comes to finances.
1. Holding Onto Your House
Many individuals going through a divorce process become emotionally attached to the idea of keeping and staying in their homes. Unfortunately, hanging onto your family home is not always the smartest idea.
Holding onto the home relates to the next mistake, underestimating expenses. In addition to the mortgage and property taxes, individuals must also consider any needed upkeep or replacements. This is especially true of any home that has seen more than a decade or two of living. Selling the house and splitting the profit could prove to be your wisest decision for the long term.
2. Underestimating The Expenses
Things will get a lot tighter financially when you suddenly have only one income to rely on. It’s very possible that only one spouse knows the exact amount of monthly family expenses. Even if you are the spouse responsible for paying all the bills, you need to make sure you grasp the full financial aspect before proceeding with a divorce.
The best way to financially prepare for your post-divorce needs is to make an inventory of all your assets and debts, if applicable. Marital assets should always be divided equally between spouses during a divorce process. Both spouses should get a full credit report and never overlook current healthcare coverage.
3. Tax Strategies
Nearly every financial decision during this process will come with tax consequences. For instance, certain alimony or separate maintenance payments are deductible by the paying spouse and need to be reported as income by the recipient spouse.
When looking at the division of assets, you must know that the “spendable” value of your retirement account could be nearly 65% of what the statement claims after taxes. Be sure to talk to your divorce attorney and financial advisor regarding retirement funds, which can incur costly tax penalties if done incorrectly.
Emotional Mistakes In Divorce Over Age 50
Of course, financial mistakes are the only hurdle during this process. It’s no secret people over the age of 50 can still make emotional mistakes during a divorce. Try to avoid these costly mistakes.
1. Acting On Emotions
The dissolution of a marriage is always hurtful. A divorce requires some very deep personal decisions that can ultimately impact your future and your children’s futures. Do not let momentary pain or anger blur your judgement.
Ensure you are willing and ready to adapt to lifestyle changes. It’s best to spend the necessary time with friends and family to fully work through all your emotions. Doing so ahead of time will prepare you to talk business when the time comes.
2. Isolation
It may be hard to do, but it’s important to refrain from isolating yourself during a divorce. Reach out to family and friends when you need support.
Find someone or a group that will encourage you to set goals, try new experiences, and take the needed steps to get through this difficult time in life.
3. Not Hiring An Experienced Divorce Attorney
Gather an experienced legal team for your case. Additionally, you may want the services of a third-party mediator to draft your separation agreement.
There are also mental health professionals who are trained specifically to help people get through a divorce. Contact the experienced team at High Desert Family Law Group today!
Source: “Divorce Advice For Older Couples: Mistakes To Avoid When Divorcing Over 50” Charles Ullman https://www.charlesullman.com/mistakes-to-avoid-when-divorcing-over-50
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