Terzich & Ort, LLP
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Divorce in Minnesota

Divorce In Minnesota

Divorce in Minnesota

Divorce In Minnesota

Spousal Maintenance

Spousal Maintenance

Spousal Maintenance

Spousal Maintenance

Property Division

Property Division

Property Division

Property Division

Paternity Cases

Paternity Cases

Paternity Cases

Paternity Cases

Domestic Abuse

Domestic Abuse

Domestic Abuse

Domestic Abuse

During the divorce process, making mistakes could harm your finances for years to come. The stakes during this time are especially high for people over the age of 50 who are nearing retirement. What errors should they avoid when approaching the divorce process?

Mistake #1: Underestimating the financial impact of divorce

Getting divorced after age 50 means you have less time to bounce back financially before retirement. You need a clear understanding of your finances and anything you and your spouse co-own, including retirement funds, insurance policies and real estate. Working with a financial advisor can be invaluable in helping you make informed decisions and plan for a financially stable future.

This is especially crucial for women, who often earn less, have less savings and might have spent time away from work during their marriage. Studies indicate that a woman’s household income can drop by as much as 40 percent in the year after divorce. Careful planning can help them weather these changes.

Mistake #2: Insisting on keeping the house

While your home can be a comforting place, holding onto it during a divorce might not be the best decision. It can be tough to manage the costs of a house on one income. High maintenance expenses, property taxes, and possible repairs can strain your budget. You should carefully consider these details before making keeping your home a priority.

Additionally, the house might represent a significant portion of the couple’s assets. Keeping it could mean giving up other financial resources, which could compromise your retirement plans. Thoroughly assessing your finances can help you determine what option is best for you.

Mistake #3: Thinking court is the only option

Many people think fighting in court is the only way to finalize a divorce. However, other less stressful options like mediation or collaborative divorce are available. These methods can lessen conflict and costs and often give you more control over the outcome. Knowing all your options can lead to better decisions and a more amicable split.

Mistake #4: Overlooking future health needs

As you get older, health care becomes more critical. When you are discussing the divorce, it’s important to plan for health insurance, especially if one spouse has coverage through the other’s job. Think about your health needs in the future and make sure you have good insurance and resources.

Mistake #5: Forgetting to update your beneficiaries

After the divorce, it’s crucial to update your estate planning documents like your will, powers of attorney, and health care directives. This makes sure your assets go to the right people and that the correct people can make decisions for you if you can’t. Also, remember to change the beneficiaries on your life insurance, retirement accounts, and other financial plans. This step prevents your assets from accidentally going to your former spouse after your death.

Divorcing after the age of 50 brings its own set of challenges. By avoiding these common mistakes, you can handle the divorce process more effectively. This preparation helps lay a strong foundation for a fulfilling future.