Avoiding the financial pitfalls of a grey divorce
Some couples who are unhappy are deciding to end their marriages even if they have been married for many years. Divorce over the age of 50 — or grey divorce as it is known — is becoming more common today. In fact, overall divorce rates are declining in the country except for couples in this age range. Arizona spouses in this situation may wish to sidestep the possible financial ramifications of divorce later in life by avoiding certain mistakes.
When a couple that is close to retirement age divorces, there can be added financial pitfalls which could include retirement plans. One piece of advice experts agree on is selling the family home to offset any financial injury; holding onto a home may make the situation even more tenuous. Couples also need to know where they stand in terms of their assets and their debts so each person can make plans regarding their financial situation. Not looking at that picture can also create an added financial burden.
Divorce also changes a couple’s tax situation, so they need to focus on those changes and how they will affect each of them. Speaking with an accountant or tax adviser independently may be wise. Another error many people make is underestimating their monthly expenses living as single individuals. And former spouses should never hide assets from each other; it’s actually against the law.