People think that a marriage that’s spanned decades is one that will continue to last. While this is true in many cases, grey divorce is also common. There are some unique challenges that come with this type of divorce, so you have to be sure to think about these if you’re in this position.
One of the biggest considerations of a divorce that happens later in life has to do with finances. Up until the divorce, you were combining finances to live a life together after retirement. Now that you’re divorcing, you have to split the retirement accounts. This means that the retirement accounts will have to support two homes.
How can you soften the blow?
There might not be an easy way to soften the blow. You may need to cut expenses and downsize your lifestyle. Some people who are in this position find that they have to re-enter the workforce to support themselves.
The property division process might help you to start your single life on the best footing possible. It might be possible to liquidate some assets so you can pay off marital debts. This enables you to not have those hanging over you when you’re trying to make ends meet.
You have to ensure that proper documentation is sent to the retirement account administrators. You may need a Qualified Domestic Relations Order (QDRO) to divide the retirement accounts, so be sure you find out if you need this.
Making sure you review the possible property division options is critical if you’re divorcing later in life. You have to be sure that you’re doing what’s in your best interests, especially when you think about how the divorce will affect your retirement.