In Montgomery, Tennessee, several financial matters are considered when a couple divorces. Besides alimony and child support, property division is also an important factor that comes into play when a couple decides to part ways.
In recent times, the divorce rate among baby boomers has seen a steady rise. The trend has affected those who are close to or in retirement and divorces are straining retirement purses. Two decades ago, the divorce ratio was one in 10 for couples older than 50. Currently, one in four marriages for couples over 50-years-old end in divorce — that increase has adversely affected women in particular.
Valuation and property division in all cases can be tricky, especially if financial decisions were made by one partner. Taking stock of bank accounts and property becomes mandatory for both partners which may be a difficult first step to take. Divorcees also need to understand their credit score prior to divorce.
Very often, if a single spouse handled finances, all loans and credit cards may have been in that person’s name, hence the other person may not have credit in that person’s name alone which could affect ability to obtain credit post-divorce.
A house can also be a bone of contention for divorcing couples. The important factors to consider are if a spouse has the necessary balance in bank accounts to buy out the other spouse’s share or if the spouse can maintain the property. The spouse who does not retain the house needs to ensure that the person’s name is no longer on the deed so that any late mortgage payments cannot be tracked to the person.
It also makes sense to negotiate with a spouse about health insurance claims. Many do not know that entitlement to health insurance does not cease after divorce.
Source: Fox Business, “Divorcing Baby Boomers: How to Get a Financial Grip,” Donna Fuscaldo, April 30, 2014