Senior Divorce Issues

Here are some of the major considerations for divorce-bound seniors and their supporters. They highlight the importance of getting professional help from financial advisors and family lawyers:

Standard of living. Many seniors are on fixed income, and it’s harder for them to recover from financial shocks. As such, divorcing seniors need to know what standard of life they can expect after divorce; and, if necessary, make financial adjustments to minimize their risks.

Asset and debt valuation/allocation. Many senior couples are either living mortgage-free in the family home, or their home equity has dramatically increased from when it was purchased. And of course, there could be retirement and life insurance plans. All of these assets need to be evaluated and allocated, and this can be complex; especially during fluctuating stock market conditions. At the same time, some couples may have joint debts, such as car loans, lines of credit, and so on. These, too, need to be sorted out.

Estate planning. Many husbands and wives name their spouse as the beneficiary of their estate – but after divorce, this (almost certainly) needs to change. Estate planning can also become more complicated if a spouse remarries. An experienced estate planner can help untangle these issues before they become a major problem for both surviving ex-spouses, and any children or other beneficiaries.

Family issues. Even the most amicable divorce scenario can give rise to family issue such as “who shows up to the hospital during a birth,” and so on. Divorce professionals such as mediators, can foster positive discussions and draft an agreement that is acceptable to both spouses.

Future health issues. Most spouses expect to rely on their husband or wife to help them make it through inevitable mental and physical health challenges as they age, or immediately after the separation, especially for the spouse who does not want the divorce. It would be wise to look into or arrange for potential caretakers by having a proactive discussion and plan with the children.

Gazing into the Future…

With seniors being -- by far -- the fasting growing demographic group by age, senior divorce may emerge as the dominant divorce issue in the 21st century.

As always, time will tell.