Persons over the age of 50 might look closer at their finances since retirement years will soon be upon them. Life changes could make things more complex, including the unfortunate situation of going through a “gray divorce.” Yes, older people may find it necessary to dissolve their marriages. The process in Tennessee settlement negotiations might involve taking careful steps to avoid costly financial mistakes.
The financial concerns over a gray divorce
Gray divorce may prove complicated because both spouses might have commingled financial assets and liabilities. The divorce proceeding could involve bitter disagreements between spouses unsure about how to split up the property.
For example, one spouse may wish to retain full ownership of a home even when doing so is ill-advised. A home comes with many expenses; including taxes, upkeep, insurance, and repairs. A sentimental homeowner could suffer financial hardships after fighting for a home that turns out to be too costly to keep. Supporting the house on a single income could drain retirement savings, creating worse troubles.
Further concerns for those going through a gray divorce
Working with advisers to ensure both spouses gain a precise picture of their financial situation may help. If one spouse tries to hide assets, that wouldn’t be a positive thing. Not knowing about debts and liabilities, such as taxes or “secret” joint lines of credit, could lead to further disaster.
Splitting pensions and retirement accounts may require sensitive negotiations. The spouse who contributed more to the account might want a more equitable distribution, although the other spouse might feel entitled to at least half.