When you find yourself navigating a Michigan divorce during your later years, you may have distinct financial needs and challenges that differ from those faced by younger people in the same situation. For example, you may not plan to reenter the workforce again, and you may be looking at retirement within a few years, rather than long into the future.
For these reasons, there are certain financial steps you may want to take when you divorce later in life to make sure you give yourself your strongest shot at a successful financial future. When you go through a “gray” divorce, consider doing the following.
1. Square away shared debts
Making a clean break from your partner involves divvying up any debts you share and then doing something about any shared accounts you still have. Remember, if your name appears on an account, you have at least some degree of responsibility for it.
2. Develop a clear sense of your retirement picture
Unlike younger divorcees, you may be close to out of time when it comes to saving for retirement. Make sure you understand any implications that may come with splitting retirement accounts between you or taking distributions early.
3. Update your estate plan
You may also want to change the beneficiaries you listed in your will or give someone else financial power of attorney in the wake of a later-in-life divorce. Otherwise, you run the risk of your ex inheriting some of your estate or having control over your financial affairs in the event that you become incapacitated.
When it comes to your financial future, post-divorce, it pays to plan ahead.