Older Couples Have Different Concerns in a Divorce

July 22, 2012

Older Couples Have Different Concerns in a Divorce

With a national divorce hovering around 50 percent, most people are familiar with the difficulty and hardship that come along with ending a marriage. More than ever though, older generations are divorcing. As of 2009 -- the last year such data was compiled -- baby boomers make up one out of every four divorces. That is an increase of 15 percent since 1990. This increase is felt particularly hard in Florida, where countless residents of northern states come to live out their golden years.

Divorce at any age is difficult, but older couples have concerns and experiences that are unique to their phase in life. Economic differences are especially notable between young couples and those who are more mature.

Assets accumulated over a lifetime of work and saving would ideally provide a comfortable life for both spouses upon retirement. In a divorce, these assets could be split, putting a crimp in the plans of older people who may not have much of a working career left to replenish the funds they had set aside to support themselves through the golden years. A divorce can be particularly troublesome to those who have long-term health issues that require costly medical treatment; such illnesses would tax even the largest of retirement accounts, but when the funds are split in a divorce, one spouse may face a significantly greater economic burden.

At the outset, it is important for those going through a divorce to take a long-term approach to the divorce. Even though emotions run high, a clear-headed review of the process can reap benefits down the road. Establishing a financial plan and budget to gain perspective on a new, single life is a great way to start. For example, with retirement looming, it may be important to consider reduced spending as shared assets are split. In addition, those going through a divorce should stay vigilant when tracking assets through the process to ensure there is no abuse.

Dividing Assets: What Each Person may Be Entitled to

If is often the case that the longer a marriage lasts, the more assets a couple has. This can include bank accounts, stock portfolios, real estate, retirement savings, pensions and more. In Florida, divorce law calls for property to be assigned by "equitable distribution," which does not necessarily mean each spouse will receive the same amount, only that the assets will be proportionately divided.

Still, divorcees should consider how different plans can work for them when determining their path. For example, many spouses dread the word "alimony." It can, however, be an advantageous arrangement for some couples: one party may benefit from a steady, monthly income instead of a lump sum payment while the paying party might benefit from a tax deduction.

To find the best arrangement possible for your unique financial situation, proper review and preparation is vital. For older couples in Florida facing the prospect of a divorce, working with an experienced divorce attorney can help them wade through what may feel like an overwhelming amount of information and determine the best course of action.

Article provided by Curtis R. Cowan, P.A.
Visit us at www.curtcowanlaw.com