For Maryland couples, a divorce can be financially devastating at any age. However, this is especially true for baby boomers who have retired and no longer have a job to increase their income. Women often are hit the hardest because the men typically control the finances and, after decades of marriage, things can get tricky when trying to split property due to all the assets accumulated. Fortunately, there are ways to survive after a high asset divorce during retirement.
Finances get hit hard, which is why it’s important for those going through a divorce to know their credit score as well as all the loans for which they are responsible. In addition, having a savings account is crucial in order to pay for expenses after a divorce. Social Security benefits can help greatly, if either spouse is eligible.
Many couples fight over the home, but in reality a house is very costly to maintain. Plus, if the mortgage hasn’t been paid off, the spouse who wants the home would have to buy out the other, and that’s not always financially possible. It might make more sense for the person to rent an apartment or smaller home until he or she can save up more money.
There are other assets to consider as well, such as pensions and retirement plans. If either spouse has these, they would be considered part of the asset division in the split. In addition, health benefits can be subject to negotiation in a divorce. This can help the spouse get back on his or her feet financially.
Divorce can be challenging as a couple grows older because they want to make sure they have enough money to allow them to live comfortably. Although many may look for a short-term fix, the goal is to think about how to meet long-term goals. Many people live 20 or 30 years or longer after retirement and there needs to be sufficient funds in place to meet these goals.
Source: FOX Business, “Divorcing Baby Boomers: How to Get a Financial Grip,” Donna Fuscaldo, April 30, 2014