January 13, 2019
Does heartbreak have an age limit? Divorce rate amongst couples over 50 has doubled in the last 25 years, amongst couples aged 65 or more, divorce rate has tripled since 1990. Loss of a spouse is a tragedy, end of a marriage is equally traumatic. It is the end of a lifestyle; identity and perceived financial security.
While the Finances are a major consideration, children are usually older, which makes for simpler solutions around parenting time.
The financial implications of later life divorces are enormous.
Second or third Divorces, blended families:
In north America approximately 50% of first marriages; 67% of second and 73% of third marriages end in divorce. It is likely that in second and third marriages, one or both parties have brought assets into the marriage. There may be children from previous marriages, support payment, businesses and other assets to consider.
Another important consideration is the mismatch of knowledge. Often in a marriage one party is responsible for and is better equipped in managing the finances. This leaves the other party vulnerable and at a disadvantage at both getting a fair settlement and managing the proceeds from the settlement.
Understanding your limitations so you can educate yourself and get the right help and advice is important. As a Chartered Divorce Financial Specialist) I can help clarify your options.
Spousal Support vs lumpsum payment.
Depending on the situation, when deciding whether to negotiate a monthly spousal support payment or a lumpsum payment consideration should be made towards:
Division of Assets:
Division of assets can be complex. The basic principal is taking stock of all the assets accumulated during the course of the marriage; subtracting all the liabilities or debts to arrive at a net worth, which will then be divided between the two parties. However, some assets may be difficult to value, like pensions and businesses.
In addition to valuing the assets, the practical issues need to be considered. For example:
Then, there is an underlying lack of trust. One party may not want to work with the Accountant of Financial Planner that has been working with the family for a while due to perceived impartiality.
It sounds complicated. How can you negotiate a fair settlement when you don’t fully understand its implications?
Working with a Divorce Financial Specialist
I am a big believer in education.
Your Finances are an integral part of you and your life. When dealing with a divorce, especially in the later years, much is at stake and you cannot afford to get it wrong. Professionals like myself can help you, but you are the only one in the unique position to know:
There are many ways a settlement can be reached, as a Chartered Divorce Financial Planner, I look for solutions that address your unique situation.
You may not have the ability to crunch numbers or figure out the tax implications of certain decisions, (that’s my job) but you can educate yourself enough to ask the right questions.
Your input is vital, and your clarity will reward you in many ways. It will reveal options you hadn’t considered so that you may negotiate powerfully for things that really matter to you.
Divorce brings with it a complete disruption in every area of your life, but when the storm passes, you have the opportunity to start again with a new foundation and build a life of your choosing.