A divorce, especially in your later years, requires you to make adjustments in many areas of your life. Financial, social and emotional changes await as you navigate the next chapter.
Your decisions and actions have the ability to make or break how well you handle your finances after a divorce.
Maintain your independence
Yahoo! Money recommends running a financial diagnostic during a divorce or just afterward to see where you stand. This includes taking a clear and objective look at your individual assets and liabilities. From your accounts, then calculate your net worth. As a retiree, you should have a positive net worth and the higher the number the more options you have.
For many people, the struggle to maintain financial independence requires some education. You should devote some time to learning your Social Security options, especially the area of spousal benefits. Many people do not know that an ex-spouse can still claim spousal benefits.
Look into all your options
Each person’s situation is different, but divorce in retirement has many complexities. These include such areas as insurance policies, routine bills and paperwork and medical payments. You should look into the following areas if it is appropriate to your situation:
- Consider your work options
- Contribute to a retirement plan if still eligible
- Look into financing long-term care services
- Hire a professional financial advisor
- Update your estate documents
- Update your financial records
If you managed the finances in your household, the task might not seem as challenging. However, if you did not take part in most financial decisions, you will face a steeper learning curve. With a little effort, though, you can get your financial house in order after a divorce.