Wanting to get a divorce at any age because of infidelity, wanting independence, or financial stress are all valid reasons whether you are in your 20’s or your 60’s. However, if you are closer to your 60’s there might be some circumstances should be taken into consideration such as aging, health concerns, or family related tensions such as losing certain family members or friends. It is also good to keep in mind that there may some difference in emotional impact in your later years and there may be less time to recover financially, which is one of the main concerns in advanced age divorce.
Assets in Divorce
One of the most prominent parts of divorce is the division of assets. Often, older and more mature clients have unique assets issues such as retirement accounts, homes with significant equity and other holdings – which will often require an attorney’s help to resolve in an uncontested divorce or in an a contested case. In any event, the market value of your assets is not the only thing should be taken into consideration, the usefulness later in life should also be considered. Some of the most argued assets are retirement accounts and homes.
Retirement Savings in Divorce
It can be challenging dividing retirement plans, especially if both of the spouses invested in them. This requires careful attention from whoever is preparing the paper, preferably an attorney – as this is an area of law that must be handled carefully and accurately. In some instances you will need to a separate court order called Qualified Domestic Relations Order (which is a court order separate from the divorce), also known as QDROs, to cover the division of retirement benefits and accounts. To be certain that it has gone as well as possible, it is advised that you speak with a lawyer about receiving distributions and avoiding tax penalties, survivor benefits after the passing of a spouse even after divorce, hardship withdrawal if applicable, military retirement benefits for civilian spouses, entitlement to contributions made to retirement plans after divorce, or any loans taken out of a 401(k) that should be repaid before their division between the spouses.
Your Home and Real Estate in Divorce
When trying to figure out what to do with the marital home, take some things into consideration. For example keeping your house provides you with future benefits that might be more important the older you are because of other factors, for example age triggers eligibility for real estate property tax exemptions and waivers. You might also eligible for a reverse mortgage beginning at the age of 62; the benefit being that a reverse mortgage offers a potential stream of income. Primary residences receive special treatment for people qualifying for public benefits. Also, tax benefits such as deductions for mortgage interest and taxes and exclusions from gains upon sale can be important in later years. It is also good to remember that owning a house means you have potential rental income. Also, keeping the house means you have access to equity even if you decide to downsize.
Social Security Benefits and Divorce
Another of one of the most prominent topics in advanced age divorce is what will happen with the social security benefits. According to the rules, social security benefits are not assets that the court can divide during the divorce, however, that can still affect your income. If your marriage lasted 10 years or more and you are at least 62 years old you are eligible to collect retirement benefits on your ex-spouse’s social security record without reducing their benefits, even after your divorce. It is also important to remember you may be able draw benefits of up to 50% of your ex-spouse’s benefit, and that once you have been divorced for at least two (2) years you will be eligible to receive benefits through ex-spouse even if they themselves are not receiving benefits yet. If your ex-spouse passes, you may be eligible to receive survivor benefits of 100% of your ex-spouse’s social security benefit. To be eligible for this your marriage must have lasted at least ten (10) years, you are at least 60 years old, and you are not entitled to retirement benefits equal or greater than that of your ex-spouse’s benefit
Your Health and Well Being in a Divorce
Serious health conditions can have an impact how a marital estate is divided and whether one spouse needs alimony, especially if that spouse isn’t able to earn income and doesn’t have sufficient assets to live on. It is also important to remember that a spouse with a serious affliction like Alzheimer’s may need a guardian that has been appointed by the court to provide surrogate decision making.
