Florida couples that plan to divorce later in life might wonder how to do it without jeopardizing their retirement. This issue has become more prevalent as the divorce rate rises among baby boomers. The rate among couples over the age of 50 used to be approximately 10 percent. Over the past 20 years, however, that number has increased to nearly 25 percent. It is now more important than ever that baby boomers learn how to protect their finances.
An individual contemplating divorce should always review documents to grasp a full picture of the couple’s finances. That may include reviewing bank and credit card statements, brokerage account statements or retirement accounts for both spouses. Some experts recommend that, at this point in the process, each spouse forward mail to a personal mail box and open an emergency savings account to deal with expenses that come up during the divorce. This step is especially important for a spouse who did not consistently participate in the finances during the marriage.
It is also important for each spouse to pull credit reports and consider how divorce could affect credit ratings. A spouse whose name was not included on accounts during the marriage may have a reduced credit history. A lower credit rating or lack of credit history can be problematic, especially for a spouse who wishes to refinance the marital home and remain living there.
Seeking the advice of a divorce lawyer may be beneficial to individuals unfamiliar with the extensive financial process of divorce. Legal professionals may be able to help by negotiating a fair split of all marital assets as well as addressing any concerns specific to that marriage.
Source: Fox Business , “Divorcing Baby Boomers: How to Get a Financial Grip”, Donna Fuscaldo, April 30, 2014
