Gray Divorces Have Their Own Financial Considerations
June 9, 2020
If you are in your 50s in Texas and are in the process of a divorce, you have different financial considerations than someone who is younger and at a different stage in life. You need to think about both your financial situation after the divorce and your potential retirement plans. The decisions that you make now will affect your retirement.
Make Sure to Plan for The Gray Divorce
The most important part of a “gray divorce” may be the planning phase. You will run into great difficulty if you do not do legwork beforehand, which involves taking an inventory of all of your assets and figuring out exactly what your expenses are going forward. This also means having all of the documentation handy and the property appraised. When you know what is part of the marital estate, it is more conducive to making the right decisions about how to divide it.
Consider the Future when You Settle
You will also need to consider the future. Try to gain a sense of how much it will cost you to live each month along with how much you still need to save. Gray divorce will most likely set your retirement plans back at least somewhat. You should calculate how much you will need to be able to afford to retire and compare it to the current assets. Finally, once the divorce is final, you should make sure to change the beneficiaries on your accounts.
Since there is less time to financially recover from the divorce, the decisions that you make during the process are crucial. This is why it may be beneficial to have a divorce attorney help you understand the ramifications of what you choose. The attorney may advise you of what you should realistically expect in a divorce settlement and might make suggestions with your ultimate retirement goals in mind.