Financial implications need to be understood in gray divorce

On Behalf of Sanchez Burke, LLC

The overall divorce rate in Louisiana and the United States in general is declining except in one age group. The divorce rate for those over 50, known as gray divorce, is actually on the increase. While financial concerns are paramount in any marriage dissolution, they can be critical when the parties are near retirement age. This is particularly true if one spouse did not work outside the home.

It is important to come up with a realistic budget for after the separation and make sure it includes immediate big-ticket items that might need to be purchased, as well as preparing for unforeseen expenses. If one is not accustomed to managing the household on a day-to-day basis, make sure that critical expenses are all accounted for. These include things like insurance, everyday expenses and housing costs.

When it comes to dividing up marital assets, it is vital to have an understanding of the tax implications of different types of assets. Some retirement accounts are pre-taxed, and others are not taxed until withdrawals are made. This means that dollar-for-dollar amounts of the assets may not actually be equal.

Divorce is not easy, and while it can be emotional, it is best to try to keep the emotions out of it. This is particularly true when it comes to the division of assets. If one considers it as a business negotiation, it may be possible to arrive at a fair and reasonable division of property and finances. Consulting with an experienced family law attorney in Louisiana can give a person who is facing divorce a realistic overview of one’s financial situation.

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