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Divorce pitfalls to avoid for older adults

| Mar 10, 2021 | Blog, Divorce & High Asset Divorce |

Older adults who go through the divorce process in Connecticut should be aware of several pitfalls that people in their age group might be particularly vulnerable to. Divorce can be costly, and older adults may have less time in the workforce to make up for financial losses compared to younger adults.

Understanding finances

Another issue that older adults might face is simply not knowing much about their finances. In some marriages, one person primarily handles financial issues, and this could leave the other person at a disadvantage in the divorce process. For this reason, if you are considering divorce, it is usually a good idea to try to gather as much information as possible about the shared finances as well as each of your individual finances. Bank statements, tax returns, investment information and any other paperwork can be helpful. Having these records can also be useful if one person tries to hide assets.

Financial mistakes

After years of marriage, one person might be tempted to hang onto the family home for sentimental reasons. However, this can be a big mistake from a financial standpoint if the person has not realistically examined the cost of keeping the home on a single income. In general, people should make sure they have a good sense of what a post-divorce budget should look like.

Retirement

Many older adults going through a divorce will have to make significant changes to their retirement plans. They should be careful about how they divide retirement accounts to avoid taxes and penalties.

After a long marriage, a couple may own many assets, and the process of property division can be complex. However, they might still be able to negotiate an agreement that they are both happy with, which can be less stressful than going to court.