Divorcing at a later stage in your life can be a difficult process. Senior citizens often find it challenging to file for divorce than their younger counterparts. Here’s what you need to know about a late-life divorce.
Asset Division
Dividing assets among the spouses is an important facet of divorce. Divorcing after 50 complicates this issue since you will find certain assets more valuable later in life.
Your Home
When you retain a house, you may realize greater benefits with age. For instance, after a certain age, you may become eligible for property tax exemptions as well as waivers.
When you reach the age of 62, you may be entitled to a reverse mortgage that can provide steady income.
Rental income from your property is more important in old age as well.
Retirement
Division of retirement plans can be quite complicated and it requires the intervention of a capable lawyer. A separate court order may be needed to decide this matter. Before making a retirement decision, you should obtain a Summary Plan Description from the administrator of the retirement plan.
You should inquire from your lawyer about the following.
· If you can avoid tax penalties while receiving the distribution
· Whether you are eligible for survivor benefits after your spouse passes away following the divorce
· If your spouse has withdrawn a loan from the 401k plan that needs to be settled before the division of funds
· Whether you are eligible for contributions to the retirement plan following a divorce
· If you can receive a hardship withdrawal when necessary
Social Security
If the marriage lasted for at least 10 years and you are at least 62 years old, you are entitled to benefits from your spouse’s social security without a reduction in the benefits of your former spouse. You may receive benefits up to half of what your former spouse is receiving.
You are also allowed to withdraw benefits when you reach 62 years of age on the basis of your own social security or that of your spouse. In case, the benefits from your former spouse’s social security are greater, you can switch to those after reaching the full retirement age.
After your former spouse dies, you may be entitled to the whole social security income of your spouse by way of survivor benefits. However, certain conditions must be met. The marriage should have been at least 10 years old, you are 60 years old or above and your benefits are not greater or equal to those of your former spouse.
Planning carefully for the years ahead is imperative because you may find that you have to survive on less income than you anticipated. There is a chance that you may have to work longer or even re-enter the workforce.
Since there are so many crucial issues pertaining to a late-life divorce, you should get in touch with an experienced lawyer.
Contact us today.