Avoid financial disaster in a California “gray” divorce

Avoid financial disaster in a California “gray” divorce

In California and throughout the country, more and more people are deciding to part ways with a spouse rather than stay in an unhappy marriage. In many cases, the spouses making such decisions are 55 or older. So many people have been filing for divorce later in life in recent years that they are known as “gray” divorces.

When a younger person files for divorce, he or she may have decades ahead in which to work and rebuild finances. For a spouse who is 55, 60 or older, there are fewer years available to work and amass savings. In fact, many spouses, especially women who had stayed home full-time to raise a family, find themselves financially strapped and unable to make ends meet following a divorce.

Keep these things in mind to avoid financial pitfalls in a gray divorce

There are several ways to minimize the potential financial strain that often stems from a gray divorce, such as those shown in the following list:

• Avoid making major financial decisions or changes for at least one year following a divorce.
• Seek guidance from knowledgeable sources, such as a financial adviser or attorney experienced in divorce litigation.
• Try to set emotions aside and focus on assets and financial needs, both immediate and future.
• Research property division laws, such as being entitled to Social Security benefits based on the work record of a former spouse if the marriage lasted 10 years or more.

For many people, divorce prompts a need to adapt a lifestyle to a different financial status than that to which they were accustomed in marriage. Keeping these issues in mind may help alleviate financial distress during the post-divorce transition period.

Property division after age 60

Many people in California will file for divorce beyond the age of 60. They may encounter numerous issues during property division proceedings that would not be relevant to a younger married couple. An experienced divorce attorney can provide much-needed guidance to ensure that a fair settlement is achieved.