Many people assume that once you have been married for decades that their marriage will last forever. More and more senior citizens are going through divorces, however, and this can lead to financial trauma for them. The impact of splitting finances is much more difficult to overcome for older individuals than it is for younger people.
Women who are going through a gray divorce are more likely to have financial difficulties, especially if they took time off work to stay at home with their children. They might not have the vast retirement accounts that their husband has. People who are facing divorce when they are over 50 do have some options for protecting their future.
First, evaluate the retirement accounts. Knowing the value of the accounts can help you to determine what to do. There is a chance that you will get part of your ex’s retirement accounts. If you do, make sure that you get a qualified domestic relations order from the court to facilitate the transfer to you.
Second, you might be able to claim Social Security benefits based on your ex’s earnings. This is only an option if you’ve been married for more than 10 years before your divorce. Finding out what you are eligible for gives you an idea of what to expect.
Third, find out what options you have for insurance. You don’t need to have any period where you are uncovered because you never know what might happen. Don’t limit this only to health insurance. Also think about long-term care, life, and property insurance.
Finally, set your budget right away. This gives you a quick snapshot of your finances, which can prove valuable when you are trying to work through the property division process.