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Divorce later in life can carry financial consequences

For couples in Missouri who reach the decision to divorce later in life, the financial impact of the end of a marriage can be particularly jarring. Deciding to divorce after 50 can mean that the partners involved have less opportunity to make a financial recovery after the asset division and monetary losses involved in a divorce. While both partners may be planning to rely on savings they have accumulated throughout their lives, they will now need to support two households with the same amount of money and property.

Mistakes to avoid when dividing a retirement account

When a couple in Missouri is getting a divorce, it might be necessary to make distributions from a retirement account as part of the divorce settlement. If the account is an IRA, this is fairly straightforward although the couple will still need to observe certain regulations such as rolling the distribution into another IRA in order to avoid paying taxes and penalties. If the retirement account is a 401(k) or a pension plan, the process is more complicated.

Early financial planning helps mitigate divorce impact

It may seem illogical to prepare for a potential divorce while also planning a wedding, but that is exactly what many pragmatic couples in Missouri and elsewhere are doing. High divorce rates make asset protection a concern in the event a marriage fails, and implementing strategies designed to mitigate exposure is considered by many to be a form of insurance they hope never to use.

Dealing with finances following a gray divorce

In the past 25 years, the divorce rate has doubled for people older than 50. These "gray divorces" may present certain financial issues since the spouses are nearing retirement. However, there are steps that couples in Missouri can take to protect their finances during a late-life separation.

Planning ahead for post-divorce finances

Missouri couples going through the painful and sometimes protracted process of getting divorced typically view the signing of the final decree as a finish line. While getting a judge's signature on the dotted line is a major milestone, it's not the end of the process. The court order is more like a set of instructions for the parties.

Why revenge shouldn't be the goal of a divorce

Missouri residents may feel like divorce is the best way to get back at a spouse who has cheated or committed some other unsavory act. However, this is generally not the case. While trying to exact revenge on a spouse, a parent may inadvertently put his or her kids in the middle of the dispute. It is important to remember that children should have positive relationships with both parents.

Divorce can lead to several tax changes

The financial considerations that come with the end of a marriage can take many Missouri divorcees by surprise. A divorce always carries significant emotional and practical consequences, but the financial impacts of a split can last for many years. For example, ex-spouses will have to consider their new roles as independent taxpayers.

Tax law changes cause a rush towards divorce

Some Missouri couples may seek to move up their plans for divorce following changes to American tax law signed into effect by President Donald Trump in December 2017 that are scheduled for implementation beginning in 2019. Annually, approximately 800,000 couples across the country get divorced. However, in 2018, that number could be higher as people act quickly to avoid the implementation of the changes, which could make it more costly to pay alimony.

Divorce can lead to family expansion

For people in Missouri considering divorce, loneliness or separation from family can be a major concern. However, the growth of divorce in general and particularly among older Americans has also meant the expansion and broadening of understandings of family to include stepparents, stepchildren, half-siblings and other parts of an extended family. Family structures have grown increasingly large and complex along with the broader acceptance of divorce in American society.

A divorce's impact on credit

There are multiple ways a divorce can affect the credit of Missouri couples. The actions that they may have to take during the divorce process can have a lasting, negative impact on their credit. To transfer the family home into the name of just one spouse, it may be necessary to refinance the mortgage. This will result in a close examination of one's credit and may result in one person being saddled with additional debt.