Divorce can happen to anyone at any point in their life. However, divorce has different effects on people of different demographics. For example, people over the age of 50 who get divorced have likely accumulated more assets than younger couples.
This means there is more to divide and less time to re-accumulate assets of a similar value, as many in this age bracket may have left the workforce or will retire soon.
All is not lost, however, as there are ways for those experiencing gray divorce here in Michigan to reduce the impact on their long-term finances.
Steps you can take to protect your finances
First, focus on advance planning whenever possible. Spouses can work together or separately to list their assets and debts, those that they own together and separately.
Second, assemble any related legal documents, such as prenuptial agreements or anything that pertains to an estate plan. If one spouse suspects the other may attempt to drain shared bank accounts, the spouse can consider filing for legal separation to freeze assets.
Third, a spouse should think about what he or she may need in the future, in terms of basic expenses, retirement savings or even medical costs. A spouse should consider how he or she may need to change their lifestyle based on a new financial picture. Some people even have to think about the needs of adult children or grandchildren who may be struggling with student loans or other debt.
After the divorce has been finalized, each spouse should ensure that all financial paperwork is accurate, estate plans have been updated and insurance is in place.
Do you have questions?
Though gray divorce may have special or extensive considerations, divorce at any age can be a difficult process. There are emotional factors as well as financial ones. Some people may want to consult a family law attorney here in Michigan to ensure that their best interests are represented throughout the divorce process.