With divorce for people older than age 50 increasing in New Jersey and the rest of the country, older couples who are considering separation need to know what to expect during a gray divorce. Understanding all the consequences of divorce at this age will help you create a better strategy for life after you separate from your spouse.
The impact of gray divorce in your life
Gray divorce can be particularly devastating because it often means that people who have shared a life for many years go their separate ways. This will not only impact both parties financially but also emotionally as it might mean facing tension with adult children, losing some friends and acquaintances, having to reenter the workforce after many years and having to come up with a new plan for retirement, all of which can cause additional stress.
The financial implications of gray divorce
The financial implications of gray divorce might be among the most important concerns that people must face. Even before the first step is taken, you should begin preparing for the negotiation of assets and for how you plan to support and take care of yourself after the divorce. Some of the financial factors you should be concerned with include:
• The types of assets that you and your spouse have accrued and the tax implications when these are divided
• Social Security retirement benefits and whether you should draw based on those you accumulated or those your spouse accumulated
• Health insurance coverage options and costs, particularly if you are not eligible for Medicare yet
• Spousal support payments
If you and your spouse have accrued a large variety of assets that need to be divided, a finance professional might explain how each type of asset can be divided and the tax implications of the divisions. The outcome of your divorce settlement can affect your finances for years to come, so it’s important to understand your options and advocate for your interests.