If you are over the age of 50 and considering divorce, there are a few financial aspects you should consider first.
The fact is, if you don’t carefully plan your financial situation before the divorce is final, you may find yourself dealing with difficulties down the road. Some of the biggest financial issues that can occur during a gray divorce (the divorce of people over 50) can be found here.
Social Security benefits
When you file for divorce over the age of 50, you may find that your financial situation takes a hit. While Social Security benefits can help alleviate some of this new financial stress, there’s a caveat. These benefits are given to individuals who have worked a minimum of 10 years and are based on your income. That could leave you with less than you expect.
If you’ve always been a stay-at-home spouse or a low-earner, you may be able to claim benefits on your former spouse’s record if you meet the following criteria:
- Are minimum retirement age
- Are not remarried
- Were married to your ex-spouse for at least 10 years
- Your ex-spouse is eligible for these benefits
It’s important to note that if you are remarried, you can claim benefits on your current spouse’s record, instead.
Retirement can be expensive. When you divorce, you may only be left with half of the retirement funds, which means you may need to rethink your future plans. You also need to make plans for long-term care and how you will maintain your quality of life with a reduced income and assets.
Protecting your finances after a gray divorce
The best way to avoid financial hardships after a gray divorce is to plan carefully. You may have to adjust your way of life and other factors but doing so will ensure you can continue to live comfortably even after your divorce.