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The financial issues of gray divorces

On Behalf of | Jun 22, 2022 | Family Law |

A divorce in later life can be a troubling situation for those worried about their finances. Older persons often plan for retirement, and many rely on savings and investments accumulated to cover costs in their golden years. Divorce proceedings in a New Jersey family court might cause great concerns for those worried about how the separation may impact their financial well-being.

Financial concerns for older people who divorce

Gray divorces seem to be increasing, and the Pew Research Center reports that the divorce rate for people over 65 tripled since the 1990s. Statistics like these may lead some spouses to think about the possibility of their marriages running into trouble and conflicts. Concerns about debt, retirement savings, pensions, and more could weigh on their minds. Those without a prenuptial agreement may even think about a post-nuptial one as a way to potentially preserve their financial situation.

When divorce seems inevitable, it may be wise to consider necessary lifestyle changes. A retired person may not have enough income to support a larger home or expensive car on a single income. Therefore, scaling back could make prudent economic sense.

Seeking an equitable dissolution

New Jersey family law statutes cover many areas of divorce proceedings, including property division. Spouses may seek the most equitable distribution, especially those with limited savings or income potential. Several factors, such as net worth and education disparities, might make procuring a fair settlement vital to post-married life.

Also helpful could be spousal support payments. While spousal support may end at some point, the monthly payments might cover some living expenses during the transition to single life.

Other issues to deal with may include debts owed. Settling who pays taxes and other obligations might also become a critical part of settlement negotiations.