Going through divorce in Missouri can be challenging at any age, but it can be especially tricky for individuals over the age of 50. This is because older divorcing individuals must often address decades of wealth that they have accumulated in order to equitably divide the assets during the property division phase of divorce proceedings. In addition, their future income-earning capacity might be limited. Here are a couple of tips for protecting one’s best interests when going through a divorce at an older age, often referred to as a gray divorce.
Addressing finances when getting divorced at an older age
One of the most important steps an older person can take to protect his or her finances during divorce is to create a detailed financial plan. This involves identifying one’s critical expenses, such as those associated with life insurance, health care and living. It also involves calculating how much retirement income is needed to achieve one’s dreams during retirement. This will help an older divorcing individual to determine whether to make a career change, take on an extra job and/or seek more in spousal support in preparation for his or her golden years.
In addition, it is critical to consider the tax implications associated with taking distributions from a pension plan during retirement. Likewise, divorcing individuals should be aware of the tax amounts they must pay for drawing funds from an IRA ahead of retirement. A financial advisor can help them to make wise decisions about how to handle these financial assets in the years following divorce.
Seeking legal guidance
Along with consulting a financial advisor, it would be wise to get in touch with a divorce attorney in Missouri right away as well. An experienced attorney can help someone who is going through a gray divorce to pursue his or her fair share of assets, as well as focus on the assets that they may best benefit him or her long-term. For instance, keeping cash assets might be more helpful than keeping the marital home, which is not a liquid asset and therefore cannot be converted to cash quickly. Having proper support and assistance by one’s side throughout the divorce process can greatly increase the odds of no significant mistakes being made and of ultimately achieving the best outcome possible.