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How do divorces later in life affect people’s finances?

On Behalf of | Nov 23, 2021 | Divorce

During divorces in California, couples will need to split up the life that they shared together into two separate lives. They may need to make determinations regarding custody, parenting time and child support if they have minor children. They will also need to divide their property. This includes more than just their physical property such as homes and vehicles. They will also need to divide their bank accounts, retirement accounts, investment accounts and other financial assets.

The property division portion of the divorce can be a complicated process. If a couple divorces when they are younger, they may not have as many assets to divide, but if they divorce later in life, in many situations they will have more assets and more money in their various accounts. The reason that they have more in their accounts is because they have had more time to contribute to them, but also because if they plan to retire, they will need more money in those accounts.

Financial considerations in gray divorces

As such there are different considerations that people divorcing later in life need to consider when they decide to divorce. When couples divorce though they need to split these retirement accounts like other assets. As the couple will now need to support two homes instead of one, this can create a difficult financial situation if the couple is retired and living off those accounts. Both spouses may be able to receive social security though even if one spouse did not work during the marriage. This means they may also be able to receive Medicaid which can be beneficial.

All divorces in Southern California are unique and the circumstances of the marriage will dictate the outcome of the divorce. One of the factors that will affect the decisions that are made during the divorce is the age of the couple at the time of the divorce. If the couple is older and either retired or close to retirement, how the division of the retirement accounts may be one of the most important issues. Experienced attorneys understand the unique concerns couples divorcing later in life may have and may be a useful resource.