Divorcing in your 50’s is just as painful as it is at any age, but as the rates of divorce in the over 50’s are on the increase, it pays to be careful when navigating the process, so you don’t lose out financially when you want out of your marriage.
Divorcing at this stage of your life can be financially devastating. The cost of selling up and setting up a new life for yourself will cost considerably more now than in the past. Sky-high house prices and having no one to share the household expenses can hit your pocket hard.
Not forgetting that if you take out any loans or another mortgage to get you through the process, you will have less time to pay off your debts, recoup your losses and save for your retirement.
Let’s take a look at six of the most common mistakes that people in their 50’s often make when divorcing and how you can avoid them.
1: Failing to list your assets
In most marriages, one partner tends to manage the family finances over the other. This can mean one partner may have no idea of how much money is in the bank, in savings accounts, the value of the family home, pensions, bonds or investments the family holds, and more.
If you are the person not in the know, it is wise to take stock of what assets your family has stashed away, including your retirement savings and life insurance policies. This means you can go into your divorce with your eyes open and with a complete understanding of the financial worth of your marriage.
2: Keeping the family home
If you are set to keep the family home in your divorce settlement, you should think carefully about whether you should keep or sell it. This house may have been your home for many years, but it may be more cost-effective to sell up and move to a more affordable place if your home is a complete money pit or needs a lot of maintenance.
3: Underestimating your outgoings
Paying for everything on a single income is one of the biggest shocks for those divorcing in their 50′s. It can help to work out how much money you need to live on to make sure that you can cover all of your outgoings following your divorce.
4: Letting emotions cloud your judgment
Divorce can be an emotionally draining experience, but try not to let your emotions affect your legal decisions. Give yourself plenty of time to reflect on your choices and use reason and logic to influence your judgment rather than allowing your emotions to undermine your actions.
5: Be realistic about your expectations
Most people go into a divorce expecting to get everything they want. However, with finances, children, property, and a pension in dispute, you will need to make sure your demands are reasonable and don’t expect everything to go your way.
6: Getting expert legal help
While being in so much emotional turmoil, it can be hard for you to ask the right questions, and you can feel pressured to sign documentation without fully understanding it. If your partner is trying to influence the divorce proceedings, don’t act in blind faith.
It can help to get professional guidance from an experienced family lawyer specializing in divorce settlements. They will help protect your interests while going through divorce proceedings to come out of it in a good financial position for your future.
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