When spouses divorce, there are many financial issues to consider. Issues surrounding asset distribution could become contentious, but the parties could agree to a reasonable settlement in a Texas family law court. While financial concerns might be important to spouses of all ages, older persons might have additional worries. Persons reaching or past retirement could be in more challenging positions than younger spouses.
Financial matters and the “gray” divorce
Gray divorce refers to dissolution proceedings between spouses over age 50. Gray divorces are more common than the average person might believe, as even people married for many years could break up. Some spouses enter their second or third marriage and find things don’t work out. Often, when the divorcing couples are older, they may focus closely on financial issues since both spouses might soon end their professional careers and rely on retirement income and savings to survive.
So, alimony could be vital to one spouse’s ability to meet routine bills and expenses. Gray divorcees seeking alimony might not realize support payments are no longer taxable, which could positively affect their yearly budget. However, the person paying alimony might now have to cover an additional tax expense.
Further implications of a gray divorce
Older persons might have written extensive estate plans that bequeath assets to family members. If an ex-spouse remains on the estate documents, the results could prove disastrous when the testator or grantor did not intend to leave anything to the former spouse. Those who do not update estate plans after a divorce may create a troubling situation for heirs.
Divorced spouses might need to review their budget to make the most out of any settlement or alimony amounts. Such financial prudence could be essential when older persons look at fixed incomes or other challenging fiscal situations.