It is not uncommon for decades-long marriages to end in divorce. You and your spouse have been together a long time. You have experienced the ups and downs of marriages, raised your children, and are now approaching retirement or are already retired. It is a different time of life now, and you may both look forward to moving on with your lives separately. Because your children are adults, you may be tempted to believe your divorce will go smoothly. However, there are a number of unique challenges you need to address as a couple divorcing after 50.
Real Estate
Real estate is often one of the most valuable types of assets you have as an older couple. At this point in your life, you likely own your family home. You may have been successful enough to afford an additional condo in Chicago, a cabin in Wisconsin, or a timeshare in Florida. When you begin to discuss how to handle these assets in the divorce, your conversation is going to be far different than if you were still young parents. Possibly, neither of you may be interested in keeping the family home since it may be a smart time to downsize. Or you may agree that each of you will keep one of the properties you own. There are many ways to handle real estate during a divorce and I can help you make the best decision for your future.
Retirement
Once you and your spouse are over 50, your retirement income becomes critically important. You will both need to ensure that all retirement and pension accounts are properly allocated. If you each built up your own retirement accounts throughout your life, there may be little to transfer from one of you to the other. However, if your combined retirement savings is focused in one person’s account, then one of you will need to ensure you receive your fair portion. Dividing retirement savings can be difficult since one person may feel he or she earned it more than the other. If you need to fight for the portion you deserve, call me today.
Social Security
Neither you nor your spouse is entitled to divide your current or future Social Security benefits during a divorce, as federal laws control. However, if you and your spouse were married more than 10 years, then one of you may be able to collect from the other’s benefits. Be sure to speak with me or a financial professional about your future Social Security benefits so you can better estimate your retirement income following a divorce.
Health Insurance
As you get older, your medical needs may increase, which means remaining on an insurance plan is essential. If you are under 65 and not yet eligible for Medicare, consider how you will be covered. You may be entitled to remain on your spouse’s employer-provided insurance plan for a time after a divorce. However, this type of COBRA coverage can be expensive. You may have to purchase a health care plan for yourself through the online marketplace. Make sure to speak with me or a financial professional about this future expense. If you will be without coverage while your spouse remains on his or her plan, and your income does not support purchasing a plan, this may necessitate seeking spousal maintenance.
Estate Planning
If you and your spouse have money, investments, or property you want to pass on to your children or grandchildren, then you will need to combine estate planning with your divorce. Planning for the future is particularly important if you do not want certain assets to go to your ex’s future spouse or children.
Debt
It is common for couples to carry some debt throughout their marriages. This can include federal parent plus loans and private loans for your kids’ college educations, auto loans, mortgages, credit card debt, and business loans. Be sure to obtain an accurate accounting of all debt when entering into the divorce to ensure it is divided equitably. If possible, you and a financial professional can work out the best ways to reduce your debt in the near future so you do not have to worry about it during retirement.
Children
If you and your spouse are both over 50, your kids may be grown and out of the house or at least in college. It is not necessary to discuss parental allocation (formerly custody) in court, though you may need to work out living arrangements as a family. However, if one or more of your children is still in college, then you will need to decide who pays for their expenses. You and your spouse can work this out yourselves or you can take the issue to court. A judge may or may not expect you both to contribute; it depends on the circumstances.
Do You Need Legal Help?
If you want to move forward with a divorce or have questions, call me at (312) 621-5234 and schedule a time for us to meet.
