Avoiding Common Mistakes in a Gray Divorce

A #divorce at any age can be a devastating event, but for women nearing retirement it can be especially difficult to get through. This is especially true when it comes to finances.

According to an Allianz Life study, more than 60% of respondents said their divorce resulted in a financial crisis, and almost that many considered the divorce a “wake up” call to better manage their own finances.

If you are a woman over the age of 50 facing a “gray divorce,” what steps can you take to best prepare yourself financially for the changes to come?

Hire a Team of Professionals – This is not the time to go it alone. Having the right professionals on your side, especially an accountant and attorney, will pay off in the long run. Your attorney will advise you on all legal aspects of the split, and the accountant will help you understand the short- and long-term impacts of every proposed financial scenario.

Gather All Relevant Documents – This can be tricky, especially for the spouse who took a “hands off” approach to managing finances during the marriage. However, many experts agree that hiding assets is a realistic element of many divorces. To ensure that every valuable asset is included in the divorce negotiations, documentation is key.

This includes statements from bank accounts, retirement plans and investments along with deeds for real estate and other valuable property. If you suspect your spouse is hiding assets, you may need to add a forensic accountant to your team – a professional that specializes in studying a couple’s finances to determine if/where resources are being diverted or hidden.

Going through a divorce can lead to financial uncertainty and concern. Visit our website to learn how a Divorce Transitional Support Advisor can help you or your client regain financial stability after a divorce.