Gray divorce has been on the rise. This divorce involves people who are 50 or older. In some cases, these individuals have been together for decades.
In a gray divorce, there may be unique concerns to address, such as the division of pensions or retirement, stocks and other financial holdings. Couples may find it difficult to untangle their finances, to decide how to separate their assets and how to move forward at an older age, but that doesn’t mean that a divorce should be avoided. Oftentimes, it is the right option for a couple that has grown apart.
Avoiding retirement ruin during a gray divorce
Since people who divorce later in life may have already been saving toward retirement, this is an important topic to discuss. During your divorce, you do have some ways in which you can protect your retirement so that you can still be on the path to retirement at the age you planned on.
What can you do to make this transition possible while preserving your retirement?
Find a financial adviser
The first step is to find a financial adviser and to talk to them about how much retirement you need to stay on track with your goals. If your spouse is trying to get a portion of your retirement, you should look at its overall value and determine if there are other assets that you might exchange in place of your retirement. Having a solid financial picture will let you explore options for protecting your important retirement assets.
Get to know the laws in the state
The next thing to do is to get a better idea about the laws in the state and how they may impact your divorce. Texas is a community property state, so the judge is more likely to want you to divide your property equally instead of equitably.
Since your spouse is likely to obtain half of your shared marital assets, you should take time to identify those assets and determine which of them you’d like. You need to divide the shared value of those assets, not necessarily the assets themselves. This may help you preserve your retirement.
Gray divorces can be complex, but by getting a good financial picture and knowing the laws in Texas, you’ll be better educated when making decisions that may impact your retirement.