Regardless of your age, getting a divorce may have a significant impact on your finances.. However, ending your Tennessee marriage later in life may present unique challenges because you don’t have as much time to recover from the damage doing so might cause.
You May Lose Retirement Funds
A retirement account is typically considered to be a marital asset even if you were the only one contributing to it. Therefore, you might lose a significant amount of the funds that you were going to rely on later in life. If a retirement account is not split properly, it’s possible that you could trigger a taxable event, which could result in the government collecting thousands of dollars.
You Might Lose Your House
Your home is another asset that might be ceded to your spouse in a gray divorce settlement. While you may receive a portion of the home’s equity, it may still represent a loss of tens of thousands of dollars or more. It’s also possible that you’ll have to pay capital gains taxes on the proceeds from a sale or buyout. Furthermore, the cost of a new home or apartment may be significantly higher than what you’re currently paying today, which may hinder your ability to retire or simply make ends meet as a single person.
While you may lose assets in a divorce, it may also be possible to gain financial resources in a final settlement. For example, your spouse may be required to make alimony payments, pay joint debts or take other steps to help you maintain a comfortable lifestyle after your marriage is officially over.