A glaring complication of gray divorce is the onslaught of financial repercussions that may follow. Maneuvering your way through these complications can expose challenges and uncertainty.
Your knowledge of some of the complications you may potentially face can help you prepare for your next steps.
Division of assets
Divorce impacts couples of all ages, however, Money.com reports that since the 1990s, divorce has doubled for people aged 50 and older. One complication of getting divorced after a long marriage is the process of dividing assets. After years of shared experiences and resources, you and your spouse may have a laundry list of commingled assets that each wish to maintain ownership of.
Even if you can reach a satisfactory agreement regarding the separation of these assets, your bottom line may decrease substantially. Embracing your portion of the settlement and resolving to make immediate changes to your budget may help you minimize the negative repercussions.
Division of debts
Another complication of gray divorce is the process of splitting debts. Depending on your situation, you may have business debts, a home mortgage and car payments. Assessing who should assume the responsibility for each of these debts can prove quite complicated at times. At the onset of divorce, immediately begin saving money where you can. You may consider working with a financial planner who can help you identify a game plan for successful financial management.
It will be an adjustment to manage your finances independently after years of sharing that responsibility with another person. However, a proactive effort to update your budget combined with an optimistic attitude may help you to prevent your divorce from disrupting your finances.