Divorcing when you are older comes with many rewards. For example, you can do whatever you like without needing to consult with a spouse. Most people enjoy this freedom after a difficult marriage.
Unfortunately, many fail to protect their financial interests in a late-life divorce. If you want to live securely after ending your marriage, it is vital to consider the financial implications of your divorce and act to minimize hardships.
These gray divorce financial tips can help!
You probably know that the discretionary funds at your disposal will shrink when you are on your own. You might also understand that you should tighten your budget. Still, there is a good chance that you will face expenditures that you have overlooked when planning your new life.
To minimize the hardships unforeseen expenses can cause, consider following the financial tips below:
- Ask your advocate about a QDRO (Qualified Domestic Relations Order) to get a share of your spouse’s retirement funds
- Make a brand new budget to account for your lower income
- Consider seeking spousal support during your divorce
- Create a long-term financial plan for your retirement
- Keep a close watch on your bank accounts to spot overspending trends
- Avoid accruing new debt and try to pay off existing debt
- Avoid large purchases (cars, recreational vehicles, real estate, etc.)
- Consider seeking financial advice from a professional
It is also wise to initiate a conversation with your divorce advocate about post-divorce financial security. Doing so opens the way for in-depth discussions to discover strategies that improve your finances and minimize your economic hardships. An experienced legal professional can offer suggestions for increasing your property settlement or spousal support award.
Learning more about Michigan’s alimony and property division guidelines can also improve your financial situation in the wake of a gray divorce.