Going through a divorce is never a simple or easy process, even for Colorado spouses who are ready to move on to the next phase of their lives. When making divorce decisions, especially financial ones, it is essential to consider one's long term interests, in addition to short term financial needs. That is especially true for individuals who are nearing retirement age. The following property division approaches can help support retirement planning efforts.
Before making any significant financial decision, it is important to understand the full ramifications of that choice. For example, a common issue during divorce centers on whether to keep the family home or sell the property and divide the proceeds. Many spouses focus solely on their emotional connection to the home, rather than viewing it as an asset. If retirement is near, think about whether the house is suitable for an older homeowner, and how easy it will be to keep up with maintenance, insurance, repairs and other expenses. In many cases, selling the property and downsizing is a better course of action.
It is also critical to think about how Social Security will factor into retirement budgeting. For spouses who were married for 10 years or more, contact the Social Security Administration to determine if spousal benefits might be available. Being able to claim benefits based on the earning record of a spouse can make it easier to delay one's own benefits, allowing for maximum growth.
These are just two things to think about when weighing various property division options. Each and every Colorado spouse will have his or her own set of needs when it comes to retirement planning. Understanding how divorce factors into that planning can make it far easier to make the best possible decisions during this phase of life.
Source: Forbes, "Does Divorce Derail Retirement?", Larry Light, July 24, 2017