Assets And Late-Life Divorce
If you and your mate are preparing to get divorced, and you are fifty-five or older, there are some differences in how assets should be handled. This is because you have less time for financial recovery following divorce than a younger person would have, due to impending retirement and other factors. Some of your shared assets could be used as bargaining tools so that you can receive the things you want most, and it's important to be aware of this as you decide on what to ask for.
Social Security and Retirement
If you were married for at least ten years, you will be able to get social security benefits based on an ex's employment credits. If you earned employment credits also, you may be able to receive benefits at age 62 based on your ex, and then switch to your own at full retirement age if yours promises to be a larger amount. You are also eligible to receive survivor's benefits if your ex died after the divorce.
Additionally, you will be entitled to a portion of your spouse's retirement benefits as an asset, and vice-versa. These may need to be valued by an actuary in a divorce proceeding, and because of market shifts, you should consider asking for a percentage of the benefits rather than a specific figure.
The Marital Home
Owning a home as you grow older has plenty of up-sides and a few down-sides. Certain benefits particular to aging are:
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Property tax exemptions.
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Exemptions when qualifying for Medicaid.
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Being a potential source of income.
You could make money from your home by renting all or part of it out, turning it in to a bed-and-breakfast place, or applying for a reverse mortgage. This income potential is something to consider while negotiating.
A house can become a burden to a single person, especially if the ex was the one responsible for repairs. You might find that an apartment (where yard work and building maintenance is not your responsibility) might suit your new lifestyle better.
Whether you should keep the house boils down to what is important to you. If you value the security of possessing the home, don't think taking care of it by yourself would be a burden, and/or would like to use it to make money, then keeping it would make sense. If you have children who value having a home-place to come and visit, they may be willing to help you keep it up.
On the other hand, if you want to simplify your life and have more time and energy for other things like travel, maybe selling it and splitting the proceeds would be a better idea. It would be nice to have that money in the bank as you begin your new single life.
If you decide to keep your house in exchange for letting go of claims on other assets, you should also consider that the home's current market place value. This could potentially fall below what is owed on the house in time (if there is a mortgage on it) and any payments you may promise your ex to be able to keep it.
Since the value of assets like homes and investments can fluctuate, you might be smart to share risks by asking for a percentage of several assets instead of sole responsibility for one or more things. However, if the divorce promises to be acrimonious or contentious, you may want to simplify things by separating them.
Health and Alimony
If you have a health condition that prevents you from working, you will need alimony payments to maintain a reasonable standard of living. Also, even if you are in good health, you could ask for alimony for limited period of time so that you could get more education/training to increase your income potential. It is not so farfetched to think you may enjoy embarking on a new career path, and you will want adequate support to do this.
Consultation with an Attorney
You need to figure out how you want to live following divorce, ways you could compromise with your ex, and what you most want to keep. You should also consult a divorce lawyer from a firm like the Law Offices of Gordon Liebmann who can best advise you on your particular situation. Each state has its own specific laws on asset division, and this will affect how it can be carried out.
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