Overall divorce rates have been dropping over the last couple of decades – with one notable exception. Divorce rates among people now in the over-50 age group have nearly doubled over that same period. Here are some financial concerns that couples in this situation should think about:
- Housing – Can you afford to continue living in the house you’re in. What’s the cost of moving?
- Short term & long term financial stability – Need to create a budget allowing for changes in lifestyle which may include paying off debt and increasing savings
- Lifestyle adjustment – Older couples have less time to re-establish themselves financially. You may be faced with liquidating assets to maintain lifestyle. You may face living on half of what you planned on for retirement. Living longer and faced with the fear of outliving savings
- Retirement funds – RRSPs/ LIRA accounts are divisible property.
- Company Pensions – They can be considered an Asset or Income. New rules about valuing and dividing pensions in Ontario Jan 2012
- Insurance – You need to understand what you currently have. Going forward as a single person, you’ll need to consider life, property/casualty, disability and critical illness insurance
- Medical Benefits – can you get continued coverage on your “ex’ plan.. who qualifies as “spouse” How much will individual “plan” cost.. is it worth it?
- Account Beneficiaries – you need to consider who are current beneficiaries , if you want to change them and any tax implications in making those changes
- Getting back into the workforce.. Hard for anyone who’s been out of the workforce for a period of time to get back into the workforce
- Changing your will – you may have to look at beneficiary designations as well as who is your Executor
- Business – Your business may be your biggest asset. What’s if really worth?
It’s not easy to deal with the end of a marriage..especially if you’ve been together for a long time. I welcome you to visit Mutual Solutions – providing complete divorce solutions if you are considering ending a long term marriage.