Divorcing after the age of 50 is a little different from divorcing at a younger age. Your children may be grown, for example, so child custody concerns will not be an issue. Meanwhile, you and your spouse could share a considerable amount of wealth in the form of retirement savings, 401(k)s, pension funds, real estate and more.
In order to successfully navigate your over-50 divorce, you’ll want to avoid a few of these common mistakes.
Failing to understand your financial situation
Often in marriages, one spouse will take care of the financial concerns and the other spouse will manage other aspects of the household. If you’re the spouse who never thinks about finances and you’re going through a divorce, it’s time for you to start. You need to get a firm grasp of your financial accounts, investment accounts, retirement savings, real estate assets, and outstanding credit card debt and loans if you want to successfully navigate the asset division process.
Trying to keep the house at all costs
We all get attached to the homes we live in. Be careful not to let your attachment to your home eclipse the real financial circumstances of owning the home by yourself. You’ll be responsible for paying property taxes, repairs and homeowners’ insurance. There is also a fair amount of risk in owning real estate if, for example, real estate values decline for the worse. If you hope to keep your home, make sure that you’ll be able to afford it after dividing your marital estate.
Failing to calculate tax liabilities
Different assets that you and your spouse divide may be subject to capital gains taxes. If you have an investment account that has appreciated in value, there will be taxes associated with its value. These tax liabilities need to be factored into the equation when determining the true value of any piece of marital property.
Learn about Tennessee divorce law
Hopefully, you have never been through a divorce before. However, even if you have had a divorce, never consider yourself an expert — there is always more to learn, and each marriage is highly unique. Be sure to do your due diligence, learn about how Tennessee family law applies to your divorce, and you will be well on your way to the most successful divorce experience possible.