Financial Planning After a Later-Life Divorce
You may find yourself getting divorced all of a sudden later in life. You may not have as much of an earning ability in your later or senior years. So financial planning becomes extremely important, especially if you find yourself thrust into an unexpected divorce.
An effective financial planning can be done if you follow these simple steps –
- Calculate your living expenses – A post divorce budget will give you an estimate of how much of an income you need and what expenditures you need to reduce.
- Generate income – You will have to find ways of increasing your earnings. Check your assets and any businesses to see if you can make any passive incomes such as rent or dividends.
- Learn about taxes – Depending on the value of your assets and your property, you can choose to adjust your tax impacts or consequences. It will help you reduce your expenditures.
- Have an asset mix or mixed portfolio – Mixed portfolios have a lot more value now. Classify all your assets within a fund or a core asset class such as stocks or bonds or cash or real estate.
- Understand the changing value of money – The value of money will keep on changing. Inflation, rise and fall in the value of money will affect alimony and property buyouts. It will help you to have a financial plan in place.
The health condition of a spouse can determine how the marital property and other assets are divided. It will influence the value and need for alimony. If the ill spouse cannot have an earning and has no other means of supporting himself or herself, alimony and other factors will be greatly influenced.
Healthcare costs and availability are a matter of serious concern for people who aged over 50 and are still not eligible for Medicare. A spouse suffering from Alzheimer or dementia will require a guardian or representative appointed by the court to make surrogate decisions for them.
Financial issues related to late life divorces can be resolved by opting for a separation and a post marital agreement instead of going through a divorce. By staying married legally you can receive certain benefits. You can wait till either of you becomes eligible for Medicare or Social Security benefits.
Getting divorced in California can be complicated. Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.
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