Wednesday 26 April 2017

A Look At Divorce And Finance For Women 50 Or Older

By Harold Anderson


Ending your marriage later in life is very emotionally and financially challenging. This is especially true for women who have been stay at home moms and not worked outside the home for many years. There are some suggestions that can help older women with divorce and finance issues. Planning and protecting your financial future is important when dissolving your marriage.

According to studies, only 1 in ten people divorcing in 1990 was age fifty or more years of age and in 2010 that number jumped to one in four. According to US government statistics, dissolving a marriage drops household income by twenty percent for men and over forty percent for women. This is also at a time when retirement is more expensive for a single person than a couple considering that the cost of living for a single person is about 50 percent more than for a couple.

A much shorter time for financial recovery after divorce is also a consequence of divorcing late in life. Women are living longer which means that they face a longer period of time living on a small income. There are some ways women can protect their future financial outlook when living single. Following some simple planning tips will help.

It is important to prepare when divorcing later in life. You might want to hire a financial planner to work with your legal counsel. This team effort can make settlement decisions easier and ensure you have a comfortable financial future. It is vital that you make copies of important papers like trusts, wills, loan documents, tax returns, credit card statements, car registrations, insurance documents, and loan paperwork.

Be sure that you know what your bills are. A hidden bill is often an unwanted surprise for divorcing couples. If you live in a community property state this can be especially true. Community property states hold both parties responsible for 50 percent of the other spouses debt. Keep in mind that even in states that do not have community property laws, you may be jointly responsible for the debts incurred during the time of your marriage. It is a good idea to obtain a credit report to avoid surprises.

Also, take an inventory of household property. You may want to photograph any valuables in the home. These items may include art, jewelry, and sentimental items. Unfortunately, hiding assets is not unheard of during divorce. Some items may be used as bargaining tools when dividing property.

There are some things that you may not want to hold on to such as the house. A house has ongoing expenses and the future value is not necessarily assured. It is a good idea to investigate the financial impact of keeping or selling the home. If you are going to receive money from a spouses IRA make sure you get the facts about tax and penalties.

Check into the social security benefits of your spouse. You must meet specific conditions to be eligible to collect an ex spouses benefits. Finally, make certain that you consider health coverage.




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