Special Issues Affecting Divorce in Old Age
Seniors who divorce face special issues that younger partners may not have a problem with. Here are three examples of such issues:
The House Is Likely to Be Paid For
The first special issue is that most Americans over the age of 65 have paid off their mortgages. This means that most people who divorce after age 65 fully own their homes. A fully owned home represents a valuable asset whose dollar value is likely to be in the range of hundreds of thousands of dollars.
Dividing such an asset can be a major issue, especially for those who don't have substantial assets. For example, if you choose to keep the house, you may have to offset it by giving up your right to other assets of comparable value (such as retirement funds). Are you willing to do that?
The Spouses Are Likely to Be Retired
As you know, you have to divide your marital assets between the two of you. After decades of marriage, your assets are likely to be commingled to the point that your separate assets are nearly nonexistent. The division of assets will include your retirement funds. At the same time, it's likely that you shall have met the Social Security requirement that you have to be married for at least ten years to have a share of your spouse's Social Security benefits.
Unfortunately, this arrangement can be very disruptive to your life if you aren't a millionaire (which many people aren't). You have to use the same funds to manage two households that you would have used to manage one household without the divorce. Unfortunately, managing two households tends to be more costly, so your retirement nest egg might not go as far as it could have if you hadn't divorced.
Difficulty in Learning New Skills
This problem applies to a family where one spouse was the primary breadwinner while the other was a stay-at-home parent. When such a family divorces at a young age, the stay-at-home spouse can learn new skills, go back to school, or even start a business. That way, they will be able to support themselves after a while and the working parent won't have to support them forever.
The situation isn't the same when the same couple divorces in their sunset years. By then, it might not be practical to expect the stay-at-home parent to go back to school, look for a job, and start supporting themselves. Therefore, the partner who was the breadwinner may be expected to support their partner for their lifetime.
You will be better equipped to handle these challenges if you have the relevant professionals to advise and assist you. Consult a divorce attorney, such as those at Novenstern Fabriani & Gaudio, LLP, and let them advise you on who else you need to help you navigate your divorce.
