The Most Common Mistakes Made By Divorcing Couples Over 50

While the overall divorce rate has seen a steady decline over the last decade or so, the number of people getting divorced over the age of 50 has gone way up. This so-called “gray divorce” trend has mostly affected Baby Boomers and older members of Generation X.

If you are preparing for a divorce and are older than 50, here are some of the most common mistakes you should be certain to avoid if you are to protect your financial future.

• Not creating an asset inventory: At the outset of your divorce, it is important for you to create an inventory of all your owned assets. It is common in all marriages, but especially in marriages between older people, for one person to have a much better understanding of the finances than the other, so if you are that person, you must get yourself on even footing by getting a completely accurate picture of your finances.
• Not thinking about tax impacts: Every financial decision you make in the divorce process should be done with taxes as a primary consideration. Older couples are likely dealing with more assets (and more valuable assets), which means there are likely to be more tax implications. Work with an account or tax advisor so you can make sensible decisions.
• Not considering health insurance: Older people rely more heavily on their health insurance than younger people, so you should carefully consider how certain divorce-related decisions affect your healthcare. You can continue to use your ex’s coverage through COBRA for up to three years, but this will cost you substantially more than other options. Plan out how you’ll handle your healthcare before the divorce is finalized.

To learn more about how to set yourself up for success in your divorce, contact an experienced Long Island divorce lawyer at Bryan L. Salamone & Associates.