While some sources state that marriages among many age groups seem to be lasting longer, it may be surprising to learn that there is one demographic that has seen a rising change in marital status. The numbers of divorce filings for the over-50 demographic have actually increased significantly since 1990. There are some extra considerations that Colorado residents may benefit from if they find themselves divorcing later in life.
One of the first of these considerations may be what to do with the family home. It can be difficult to sell a home where one has raised a family, but the decision to bank the proceeds may be beneficial when it comes to retirement savings. Another aspect of a senior divorce may be how to handle retirement savings accounts. If these employment-related savings are split between the former spouses, this often creates a tax burden that makes the division costly. Instead, some courts may issue a special order that determines which funds go into which names, though there are some special pension accounts which are not easily handled in this way.
Social Security may also be divided if the marriage lasted longer than a decade and the couple have been divorced for 24 months or more. In the case of awarded alimony, the spouse who is entitled to such monies may also request that the court require the other spouse to keep up a life insurance policy that names the former spouse as beneficiary. The former couple may also elect to re-evaluate whether either party can continue paying tuition for a college-age child.
Other matters to take into consideration may include how to handle adult children living in the home. There are professionals who can provide financial advice in these special circumstances in order to ensure that an older newly-single person can still look forward to a comfortable retirement. Colorado residents who are starting the divorce process can seek the experience of a family law attorney who can provide information and guidance throughout the entire process.
Source: heraldtribune.com, “The SAVINGS GAME: Divorce late in life causes unique financial complications“, Anya Kamenetz, Mar. 3, 2017