As a person gets older, their financial situation can shift quite a bit, through things like retirement and medical expenses. This shifting can make an older person particularly vulnerable to financial changes. This can create some special concerns when a person over 50 decides to divorce (such divorces are commonly known as gray divorces).
Divorces can have big financial repercussions. So, when an older individual is divorcing, it can be very important for them to understand what financial effects the divorce will likely have so that they can adjust and plan for the future accordingly.
It can also be critical for such individuals to take steps to combat things that could cause a divorce to take a bigger financial toll than it has to. One thing that can have such a negative effect is one’s spouse hiding assets from them. Being subjected to such asset-hiding could, if the concealed assets aren’t ultimately detected, deprive an older divorcing individual of the fair divorce financial resolution they deserve, and leave them in a much weakened financial position.
Among the measures that can help with combating the issue of hidden assets is making sure to collect thorough records when going into a divorce. This can include things like financial statements, records regarding the work history of one’s spouse, tax records and records (such as photographic records) of the different assets present in the marital home.
Skilled divorce attorneys can help those who are going through a gray divorce with the collection and review of records regarding finances and assets, and with looking into whether their spouse met all of their disclosure requirements in relation to the divorce.
Having access to thorough financial records during a divorce can help with determining if there are any financial irregularities that might indicate that assets have been hidden. It can also provide proof of what assets were in the marital estate, in case one’s spouse attempts any asset-concealing tactics after the start of the divorce.
Of course, thorough financial records are not only helpful in combating asset-hiding. They can also provide a person with a full picture of what specific types of assets are in the marital estate. As will be seen in our next post, this is a critical piece of knowledge.
Source: U.S. News & World Report, “Gray Divorce: What Women Who Divorce Later in Life Need to Know,” Debbie Carlson, July 21, 2016