Simply put, the older you are when you divorce the lower your chances of recovering from any mistakes you make during the financial settlement process. It is critical for anyone over 50 to concentrate on the long-term financial planning implications of the settlement. You will have to live with the results the rest of your life.

With gray divorce on the rise—the divorce rate for adults over 50 has doubled since the 1990s, according to the Pew Research Center—both partners need to understand how to correctly split up retirement plans and other assets. One partner may offer to be generous, but that’s not necessarily helpful. You need to follow specific rules for dividing 401(k) plans and IRAs, or one partner could take an unnecessary financial hit or face an unexpected tax bill. And the closer you are to retirement, the more crucial it is to get it right.

Kiplinger

If you are over 50 and thinking about divorce you should answer 5 simple divorce financial planning questions along the way towards your financial settlement.

  1. Do I have all the information to make good financial decisions?
  2. Can I maintain my standard of living for the rest of my life?
  3. If not, what has to change?
  4. Can I live with it?
  5. How can I take control of my financial future now that I am suddenly single?

Given the complexities of divorcing as an older adult, we urge you to consult with a financial professional before making any final decisions. Cross Roads Divorce Advisors is here to help you through this process.

This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.

Lou Falvo, Cross Roads Divorce Advisors

Lou Falvo is a Certified Divorce Financial Analyst® and CIMA® (Certified Investment Management Analyst) who assists clients by evaluating the tax and financial aspects of divorce. Lou is dedicated to reducing the burden of each client by thoroughly examining the financial elements of the client’s divorce, with a keen focus on what is in his or her best interests. Contact Lou to find out how he can assist you with your divorce proceedings at  lfalvo@crossroadsdivorce.com or (585) 542-2382.