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Gray divorce financial survival guide: 4 tips

On Behalf of | Jun 13, 2024 | Family Law |

Divorce is a major life event at any age, but for those over 50, the financial stakes can be particularly high. In Texas, where community property laws reign, a later-in-life (gray) divorce brings unique financial considerations.

Here are four tips to help with your new economic circumstances following a gray divorce.

Create a new budget

Divorce can affect both income and expenses. A realistic budget that reflects your new situation, including housing costs, potential changes in health insurance and future retirement needs can offer balance. It is wise to take this step even before your divorce concludes.

Prioritize retirement security

Retirement savings are considered marital property and are subject to asset division, especially after a long marriage. A Qualified Domestic Relations Order (QDRO) will likely be necessary to split retirement accounts fairly and avoid tax penalties.

Rethink housing

Keeping the marital home can be emotionally appealing, but consider the long-term costs like maintenance and property taxes. Downsizing to a more affordable option might free up funds for other needs. Plus, it can offer an additional sense of marital closure.

Protect yourself from debt

Avoid taking on any new debt during the divorce process to prevent overcomplicating asset division and help save for your post-divorce life. Since marital debts are divided along with assets, make certain you understand your portion of that responsibility.

An extra dose of financial caution is never a bad idea during the time leading up to your divorce and through all its stages. Having experienced legal guidance as you deal with the community property laws of Texas will help