Protecting Your Financial Future in a Gray Divorce

 Posted on September 07, 2016 in Divorce

Although divorce can financially devastate any couple, those that are divorcing later in life are at an especially high risk for divorce-induced poverty. This is because, unlike younger couples, those who go through the “gray divorce” have limited to no new earning potential. Quite simply, they just do not have time to financially recover. Thankfully, there are some things you can do to prevent this negative consequences of a later-life divorce.

Reassess Your Finances

If you are like most couples, you planned for a retirement that would reasonably sustain one household. You knew how much to save to ensure you could continue your mortgage payment. You created a budget to determine what your utility bills and regular maintenance fees would be. Most likely, you even set aside a little mad money for vacations, shopping trips, or activities that would enrich your life during retirement. What you did not plan for was having to split your nest egg between two households.

Making your retirement money stretch after a divorce can be a difficult situation, at best. In the worst of scenarios, it can leave you with potentially lifelong financial woes. To prevent this situation, take a careful look at your finances now – before the divorce process is started. Do you have real estate that you can sell? Did you agree to pay for a child's wedding or college tuition? Could delaying your retirement by a few years help you recover enough to continue living comfortably? Only you can determine what you are willing to live with and let go of, but know that every decision could mean the difference between a financial troubles and a sustainable income.

Safeguard Your Health

One of the often overlooked aspects in a gray divorce is the need for health insurance. Some realize at the last minute – or entirely too late – that they are going to lose their coverage once the divorce is finalized. Others simply fail to consider the impact that a lack of insurance will have on their future. Make no mistake: even healthy individuals need health insurance, and as you get older, finding affordable coverage becomes more difficult. Come up with a plan now to safeguard your health in the years following your divorce.

Build a Strong and Solid Divore Team

Of all the mistakes that one can make in divorce, the most detrimental is often the decision to “do it yourself.” Whether analyzing your finances, filing the paperwork, negotiating a divorce settlement, or simply trying to navigate the grief of a divorce on your own, the DIY divorce can be highly detrimental to your mental, financial, and emotional well-being. Though the expense may seem difficult to justify now, know that hiring an attorney, seeking counseling when you need it, or asking a financial advisor for assistance can make a world of difference in what your life looks like once the papers are finalized.

Contact Our Joliet, IL Divorce Lawyers

At the Law Offices of Tedone and Morton, P.C., we make your future our top priority. Dedicated to helping you successfully navigate the divorce process, our attorneys will protect your rights, advocate for your best interests, and work aggressively to help you get the settlement that you deserve. Get the skilled representation you deserve. Call 815-666-1285 and schedule a consultation with our Joliet, IL divorce lawyers today.

Source:

http://www.app.com/story/money/personal-finance/2016/09/16/gray-divorce/90351386/