Texas baby boomers who are thinking of getting a divorce later in life may be interested in learning how to get into financial shape before splitting up. Due to baby boomers’ closeness to retirement age, certain steps should be taken to ensure financial health post-divorce.
Experts recommend that these couples first get their financial lives in order. This means that an inventory of all financial assets should be taken, including any retirement and investment accounts. A person’s credit score should also be investigated, and this credit rating should be fixed if it is low or nonexistent. Once single, it may be necessary to get credit cards and loans in order to make ends meet. Therefore, building a good credit rating is essential. A separate bank account should also be set up to begin saving for any post-divorce emergencies.
Divorce statistics for baby boomers have increased in the past two decades, from around 10 to 25 percent. Because of this reality, those who have been out of the workforce or had their spouse handle the finances need to begin taking the above steps. Additionally, while many spouses would like to keep the family home after a divorce, it is important to keep in mind how expensive a home really is. One spouse may be better off letting their ex-spouse keep it in exchange for cash. Experts remind the spouse who chooses not to keep the house to remove their name from the deed after the divorce.
Preparing for the legal issues faced at the end of a marriage, including a complex property division, can be difficult. An attorney may be able to help by walking a spouse through the process and representing them in negotiations and in front of a judge.
Source: Fox Business , “Divorcing Baby Boomers: How to Get a Financial Grip“, Donna Fuscaldo, April 30, 2014