There has been an uptick in divorces across the nation for people who are over 50 years old. For folks 65 years and older, t the divorce rate has tripled since 1990. Perhaps once someone hits their golden years, they realize they do not want to put up with an unhealthy relationship anymore. Whatever the reason, any divorce comes with financial uncertainty.
If you are getting what is being dubbed a “gray divorce,” chances are you have more assets to divide than other couples and what you think is yours may no longer be the case moving forward. Here are five financial situations you may need to manage.
Any debt that you secured as a couple or even separately during the marriage is considered marital property. According to the state of Illinois, marital debt does not have to be divided equally but it should be split fairly.
Divorcing later in life could destabilize your standard of living and you may be forced to delay your retirement to avoid outliving your savings. IRAs and 401ks are considered marital property if contributions to the accounts were made during the marriage. Come divorce time, those monies will need to be fairly distributed. If contributions to these kinds of accounts were made before either spouse got married, only the percentage of the total balance that accumulated during the marriage is considered marital property.
If a pension was earned during the marriage, the non-owner spouse will be entitled to a percentage when the money is paid out at retirement. The amount depends on how long the couple was married while the spouse worked at the place of employment that provided the benefits, as well as the specific negotiations to which the couple agrees.
Dissipation of Assets
Money used for an affair, lavish purchases, or gambling could be considered asset dissipation. If a spouse dissipates assets, they may have to issue a reimbursement. You must claim dissipation within a month after the discovery phase of the divorce or 60 days before the divorce trial begins, whichever date is later. You must also demonstrate that your spouse used money or other assets for non-marital purposes once the marriage began experiencing problems.
There are cases in which a spouse will hide accounts or income during the divorce process. Often it is triggered by the hope of reducing spousal maintenance or child support. If you believe your spouse has hidden assets, it is important to work with an attorney who can help you recover them.
Contact a Wheaton, IL Divorce Lawyer
At [[title]] we are prepared to uncover discrepancies and ensure that all assets are taken into account during the divorce process. Call [[phone]] for a free consultation. A DuPage County divorce attorney can review your case and help you understand your options.