Challenges For Late-In-Life Divorces
Divorce can have its special challenges for every couple, but for people over the age of 50, there are even more to tackle. Due to age, financial recovery can be more difficult since there is less time to do so. Here are some of the special challenges that you and your spouse might face during the divorce.
Who Gets the Home?
Even though this is an issue for most couples divorcing, the question of who gets the home takes on a whole new meaning after the age of 50. Depending on how old you and your spouse are, there are certain benefits that can influence how you and your spouse settle the issue.
For instance, at the age of 62, you and your spouse become eligible to receive a reverse mortgage. Taking on the mortgage could bring in more income for the person who keeps the home. Your age also makes you more eligible to receive additional tax exemptions and waivers.
Down the road, if the person who keeps possession of the home decides to downsize, the home can be rented out. Rental income could mean even more money going into you or your spouse's new household.
All of these benefits needs to be factored into who ultimately ends up with the home. You could possibly be walking away from major income if you give up the home.
What About Retirement Benefits?
If you are divorcing after the age of 50, chances are you have a retirement fund. Determining what to do with it is a bit more complicated than each spouse removing the other's name from his or her account.
One issue that needs to be considered is survivor benefits. In some cases, there is still a possibility that an ex can still receive these benefits even after divorce. You might also be entitled to receive a portion of your spouse's plans if you made any contributions to them during your marriage.
There is also the matter of Social Security benefits. If you and your spouse were married 10 years or longer and you have reached age 62, you can file for benefits based on his or her Social Security record. If your ex dies, you could possibly even qualify for survivor benefits.
Working with a divorce attorney can help ensure that you have covered every financial issue that could come up later. The attorney can review your assets and help you find possible future income from your marriage.