In Pennsylvania, unhappiness is no longer an option people are willing to settle for in their later years. As such, there has been a peak in gray divorce in the last couple of years. But, one thing that most people tend to overlook is how it impacts them financially. Here’s what you should know about your finances and divorcing at an older age:
The financial burden that comes with gray divorces
Divorce is often difficult for everyone at any age, but for people over 50, it can become rather tough. You will both suffer from enhanced expenses at an age that can seem challenging to rebuild yourself financially. Take taxes, for example; it costs 30 to 50 percent more to fund two retirement accounts than sharing one.
If you spent years out of work to take care of the children, going back to your old career can come with some challenges like significantly reduced earnings. At 50 or 60 years old, you may be reluctant to take risks as you used to as a young person because you don’t have several decades ahead, and you have more expenses to deal with.
Asset division in Pennsylvania
In Pennsylvania, the divorce court will divide your marital property in a manner they deem fair and equitable and not necessarily equal. After being together for several years, separate property may have become marital due to commingling. Failing to work with financial experts and attorneys can be disadvantageous for you, especially with complex assets like executive compensations, cryptocurrencies, etc.
Also, if you quit your job to take care of the family, you must emphasize this in court. This fact can greatly alter the judge’s decision. Other factors that hold weight in property division include:
- Your contribution in building your marital assets
- The value of your separate property
- Your financial needs and debts
- The type of lifestyle you got accustomed to in your marriage
- Your age, skills, educational background, health, and ability to earn a living
After your divorce, you will need to draw up a new estate plan. If your partner had important roles like such as financial power of attorney, you might need to change this. Also, update your beneficiaries.