With divorce rates rising in older adults, the financial stability of these individuals may be at risk. Couples 50 years or older who get divorced, otherwise known as gray divorce, can impact the way they divide their assets.
Gray divorce can significantly affect your retirement plans as well as make the process of divorce more stressful. With the help of an experienced family attorney, you can make smart, strategic decisions during your divorce that ensures your financial future is not at risk.
Here is what you need to know about how a divorce later in life can affect your retirement funding.
Division of Assets
Figuring out the worth of your assets is crucial in gray divorce cases. The potential to gain more assets start to dwindle when you get closer to the age of retirement, and some couples who have been together for many years may have a large number of assets. Community property, or all of the property acquired by either spouse during the marriage, can include:
- Retirement accounts
- Real estate
During the divorce process, spouses will divide their assets. However, in Texas, assets do not have to be equally divided between the two spouses. Instead, Texas laws state they are split up between the couple in a way that is deemed “just and right” to a court. Property division can be a complicated process, and if it is not taken care of correctly, it could result in the loss of financial security.
Additionally, to be eligible for some retirement plans, you must be married for a specific amount of time to split funds. Social Security, for example, requires that your marriage has to have lasted for ten years or longer to receive benefits from your ex-spouse. On the other hand, the duration of the marriage does not affect other retirement plans such as 401(k)s.
Going through a gray divorce can impact your retirement funds. Backed by 25 years of experience, Benouis Law specializes in property division cases. We work with financial experts to ensure you get the assets you deserve.
Contact us at 512-764-3932 to discuss how we can help you with your divorce.