Divorce in midlife comes with specific financial concerns that should be addressed during the division of property process. As Missouri is an equitable distribution state, the way a couple’s finances are divided will not necessarily be 50-50. This should be taken into consideration during the divorce negotiations.
Why is divorced in midlife different?
Divorce in midlife, particularly after spouses are already 50 years old, continues to rise even as the divorce rate in younger age brackets remains stable or even decreases. However, divorce in midlife also means that spouses are closer to retirement and must think about how they will deal with this life stage financially, even as they face a drop in their income from their divorce. Carefully planning and negotiating during the division of property will help individual spouses focus on a more financially secure future.
4 main areas of financial concern
As couples prepare for the divorce process, they will need to make a realistic assessment of their assets and debts so they can move forward with negotiations and with financial planning for their future. During this time, there are 4 areas of financial concern that they need to focus on which can have a long-lasting impact of each person’s financial stability post-divorce. These areas include:
- The family home and whether to sell it, have one spouse buy out the other or use it as a negotiation tool
- Each spouse’s income as this will determine how to proceed with spousal support and settlement negotiations
- Assets such as property, investment and businesses and how these can be divided equitably, which might or might not result in a 50-50 division
- Retirement assets, including IRAs, 401ks, pensions and even social security benefits
If you are facing a midlife divorce, you might be concerned about your financial future. However, if you take the time to plan carefully, you can negotiate a settlement that protects your financial stability.