Three Financial Considerations For Grey Divorcees in Illinois

 Posted on December 15,2021 in Division of Property

More and more couples in the United States are filing for “grey divorce,” or divorce in their 50s and beyond. The financial needs and priorities of couples divorcing in their later years are very different from younger couples. Children are usually grown and out of the house, and both spouses may be retired. 

One of the hardest parts of getting divorced later in life is managing the division of marital assets. Spouses may disagree about whether there should be spousal maintenance, how savings accounts should be divided, and whether to sell their home or allow one party to continue living in it. It is important to identify your current and future desires and needs when making important financial decisions during divorce so that you can be prepared to move forward with your life after divorce with stability. Here are some important things to consider. 

Is There a Mortgage on the Home? 

If at least one spouse wants to keep the home in the family and there is a mortgage on the home, he or she will have to refinance the mortgage so their spouse is no longer responsible for the loan obligation. This is usually done by buying out the other spouse’s equity and taking on all future costs associated with the home. If that proves to be too much money or work, the cost of selling the house later on will be managed by just one spouse. However, if the house is sold during the divorce process, the costs, fees, and realtor commissions will come out of the house’s proceeds and spouses will share the remainder. Tax considerations may also affect this decision. 

Does Only One Spouse Have a Pension or Retirement Account? 

Older divorcing couples frequently have one spouse who was the primary breadwinner during the marriage. Getting divorced may mean a significant reduction in either party’s standard of living, including a division of retirement accounts. How spouses decide to handle retirement accounts can have serious tax consequences, so it is important to consult with tax specialists before any permanent decisions are made. 

Can One Spouse Collect Social Security Based on the Other Spouse’s Benefits? 

Recognizing that one spouse often makes substantially more than the other, the federal government, in certain circumstances, allows spouses to collect Social Security benefits based on their former spouse’s benefits. To do this, the marriage must have lasted for at least ten years and former spouses must have been divorced for two years and still be unmarried. It is only possible to collect benefits for one person at a time, so the government will pay out whichever spouse’s benefits are higher. 

Speak with a St. Charles Marital Asset Division Lawyer

Because couples getting divorced later in life are often at the end of their income-earning years, it is crucial to make wise financial decisions during divorce. Kane County divorce attorney Matthew Williams has helped many couples make difficult decisions and plan for life after divorce, no matter the stage of life they are in. Contact the The Law Office of Matthew M. Williams, P.C. to schedule a confidential consultation by phone or in-person. Call us today at 630-409-8184. 

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000