When married couples grow older, they might worry about their financial situation. Budgeting for retirement in Wisconsin can be challenging, and things could become more complicated when the spouses are over age 50 and headed for divorce. A gray divorce might help two people put their troubled marriage behind them, but they could experience financial hardships if they don’t plan for life after marriage properly.
Gray divorces and finances
While financial concerns could affect divorcing couples of all ages, persons over 50 might have additional issues to overcome. An older person may find making career changes difficult, which might be troubling to those going from a two-income household to a single-income one. An ex-spouse may be unable to earn the desired income and has fewer years left in the workplace.
Decisions about debts and investments may require careful thought. An inability to agree on ways to address creditors and how to invest savings safely might contribute to a marriage’s breakdown. However, the concerns about these matters might not end when the marriage dissolves.
Perhaps itemizing a budget that considers age, savings, income and post-marriage expenses would be a wise step. The budget could derive from the financial settlement achieved from the divorce.
Seeking a settlement
Divorce settlement negotiations usually involve both parties attempting to receive what they believe is fair. A compromise might be necessary to arrive at an equitable settlement, but both parties will likely seek to accept what is reasonable. A spouse with limited earning potential might find it necessary to request alimony, as the support may help a spouse transition to a new budget and a reduced household income.
Issues related to marital debt may become an important part of divorce negotiations. Following a deliberate approach towards a financially sound settlement could address these and other essential fiscal matters.