Getting Divorced at Over 50: Some Mistakes to Avoid

Although the divorce rates seem to have declined over the past years, for those over 50 the divorce rate has doubled.  There are certain factors that you should consider when it comes to getting a divorce over 50.  A recent article that was published by The Wall Street Journal takes a look at some financial mistakes that can happen to divorcing couples over the age of 50.

One of the most common mistakes that this article talks about is regarding retirement accounts.  The article goes on to say “For those over 50, 401(k)s and other pre-tax retirement accounts may be the most significant asset other than the family home, says Landers. That makes it essential that both sides understand their true value, says Helen Hogan, a financial advisor at Sunset Financial Services – which is actually considerably less than the balance. Because the money’s taxed upon withdrawal, the real value of the account is only about 65% of what the statement says. This miscalculation can hurt, especially in community property states like California, Texas, Arizona and Nevada, where divorcing couples often split assets evenly: One spouse takes the house, the other takes the retirement fund and savings accounts, which may look equivalent on paper. Lawyers suggest negotiating for a larger portion of other shared savings to make the trade more equitable.”

As you plan your new life without your spouse, there are many things to keep in mind.  This is especially true when we start getting older in age.  As the ability to work for a living may potentially decrease as we get older, we will need to be sure that we’re prepared for the future financially.  Having an experienced lawyer, such as our firm, can help you prepare every step of the way.  Please call our offices today at 1-866-830-2064 if you need legal assistance with your divorce.

The article also provides some other useful information and can be found here.