More and more, people in their 50’s and 60’s are recognizing that their marriage has broken down, the children are raised, and they are seeking a legal separation or divorce. In these cases, there are often retirement assets that need to be divided, and other assets, like a home, that need to be valued and the equity determined. As many American are living into their 80’s and 90’s, many adults find that the want to re-engineer their last trimester of life and find a measure if independence and happiness. Jennifer Thompson wrote an essay that might be helpful to those considering divorce later in life. While written with a female reader in mind, the advice is sound and applies to both men and women in some respects. From her bio: ” Jennifer Thompson was a financial advisor for over 20 years. Now, as an author and international speaker, she teaches women the techniques to develop a consciousness for abundance for a more compelling life. ”
7 CONSIDERATIONS WHEN GETTING A DIVORCE LATER IN LIFE?
Take Stock of Your Finances
What Do You Own?
First, make a list of property you own jointly or separately. Same with debts and expenses. Then consider how will you divide any property – the matrimonial home, the rental, the cottage?
Make sure you have copies of financial information: statements for outstanding loans, recent pay stubs, and your tax returns for the past three years.
Making Informed Decisions
Know your rights and responsibilities related to joint accounts and loans so you can decide what to do with the joint assets or debts you share with your partner. Get advice from your lawyer on the best way to handle these.
Contact your financial institution for advice on how to protect your interests in your joint accounts, such as preventing further borrowing from a line of credit or withdrawals from a joint bank account.
Keep Relevant Documents and Get Acquainted with Specifics
While you are working out your separation or divorce, keep bills and receipts for expenses related to your family. This will be helpful later when you are working out how to divide your property.
If you don’t close your joint accounts and loans, both of you may continue to be legally entitled to the funds in any joint accounts, as well as responsible for repaying any debts, even if your separation agreement states that only one person is responsible.
If one borrower doesn’t pay the debt, the lender can demand that any borrower listed in the loan or credit agreement pay the entire amount or continue making regular payments.
For certain credit cards, authorized users (also called “secondary cardholders”) can be held responsible for any outstanding balances, even if they did not sign the credit card application. To find out whether you are responsible, read your credit agreement or ask your lender.
Once you have closed joint accounts or paid off joint loans, check your credit report to make sure your financial information has been updated.
Establish Your Own Accounts and Deal with Joint Accounts
Make Your Accounts Your Own
Open your own checking and savings accounts and establish your own credit if you haven’t done so already.
And What About Extended Health Care Benefits?
This is of greater concern if one partner makes a substantially lesser income or may have taken time off work to raise the children.
Health care benefits are not equal from one company to the next. This is of greater concern if only one partner worked.
What Else to Consider
- Take your time before jumping in with someone new!
- Get emotional support from a family therapist or a CPE-trained minister at your church.
- Practice self-care.
- Do not pit your adult children against your spouse. They will always be a part of him/her. No matter how old your adult children are, they will experience a sense of loss if your marriage were to end. They do not need to face an additional loss of a relationship with a parent as a result of the separation.
Where to Get Legal Help
Divorce is both financially and emotionally stressful. Anyone thinking of separating should seek legal advice as soon as they can. The laws that apply to financial matters such as property division and spousal support depend on where you live.
If you and your former partner need assistance in reaching an agreement on these issues, you can consult several resources:
- lawyers who specialize in family law
- financial advisors
- credit counselors.