While navigating a Texas divorce can be tricky at any age, the issues people over 50 might face can be more precarious. Gray divorces can involve several additional things for people to think about that younger adults do not have to consider. Avoiding common mistakes can help to make the process smoother while protecting your ability to retire on time.
Mistakes that could threaten your retirement
Several mistakes made during a divorce can threaten your ability to retire on time. For example, insisting on staying in the marital home after a divorce might not make sense when only one person will now be responsible for the property taxes, insurance, mortgage payments, and upkeep. People should carefully examine their budgets to determine whether they can afford to remain in their homes or whether it might make more sense to sell and downsize.
Another mistake many people make after a high-asset divorce is trying to provide too much support to their adult children. While helping children is laudable, people should remember that it is also important for them to protect their retirement income. Not creating a careful inventory of all of the assets owned by the couple can also be problematic. This can result in a spouse not receiving his or her fair share. Similarly, creating a careful budget that accounts for reducing income might help people protect their ability to retire on time.
People who divorce when they are nearing retirement age might want to work closely with financial advisors in addition to their divorce attorneys. A financial advisor might work with the attorney to help to protect his or her client’s financial interests both during and after divorce. This might lessen the impact people might face on their finances after their divorces are final.