Financial factors to consider when getting a divorce
Illinois couples who are ending their marriage will consider a great many different issues. Finances can be contentious and difficult whether it is a high asset divorce or one of more modest means. Property division, spousal support and other factors will come to the forefront in a divorce. This is particularly true when people over the age of 50 are getting a divorce. Statistics are indicating that these divorces are on the rise. With that in mind, the issues that come up with them should be taken into account.
Between the years 1990 and 2010, the number of people age 50 and older who were getting a divorce doubled. This information comes from Bowling Green University’s National Center for Family and Marriage Research. Part of this is believed to be due to people living longer. Due to that reality, one out of every four divorces is done late in life. A big problem with this is how financial planning might be upended.
Couples who are in a long-term marriage tend to believe that they will remain together and plan their retirements accordingly. It is not just the end of the union that can cause consternation, but accepting that they will have to split their assets and then need to pay for their own upkeep, ostensibly doubling what they pay in living expenses. It can cost as much as 30 or 40 percent more to live apart. Having a grasp on basic finances can help to smooth the process. When deciding to liquidate the assets prior to the divorce, there can be tax consequences.
Some financial advisors suggest that people who are planning for their financial future as a couple also keep in mind the potential that the marriage could at some point end. While this is sensible, many might not want to invite dispute with such a decision. For those who are considering divorce and are worried about their finances, it is wise to have legal help to try and come to a resolution that can be beneficial. With this in mind, it is important to contact an attorney.
Source: Chicago Tribune, “How to tackle finances during divorce,” Martha M. Hamilton, Dec. 2, 2016