Divorce is emotionally exhausting at any stage of Texas residents’ lives, but as they grow older and cross 50, it may be financially exhausting as well. Where only one in 10 divorcees was over 50-years-old, 20-years ago, last year, a survey revealed a startling one out of four people who divorced now were over 50. As people live longer and are more financially independent, they are looking more and more for independence in every sphere of life. However, the cost of living single is around 40% to 50% higher than two people sharing daily expenses. In addition to this, income drops more drastically for women than it does for women.
With all these financial repercussions to starting life again after a divorce, many people may be dissuaded from putting an end to their marriage. Nonetheless, there are a few steps Texas residents can take to ensure they not only can restart their life, but they can do it without breaking the bank.
First of all, the spouse who ends up with the family house may want to think about whether they want to keep it. Even though it holds many memories, it can also be a good source of money and it may cost too much for one person to maintain. When selling the house, it is also important to remember the value of property fluctuates over time and the spouse selling it may not get the same price they paid for it.
It is also important to remember that Texas is a community property state, this means that divorcing spouses will be held accountable for half of their spouse’s debt, even if it is not in their name. Getting a full credit report before divorcing is one way of understanding how much each spouse owes beforehand.
Lastly, divorcing couples should not forget to go over their health insurance policy. If their spouse previously covered them, they now need to go over their options to make sure they get coverage as soon as possible.
Getting a divorce is difficult at any time. Careful planning on the part of the divorcing couple can help ease the difficulties, and get Texas residents started on building their new lives as soon as possible.
Source: Investopedia, “Divorce over 50: Seven mistakes to avoid,” Catherine Fredman, Aug. 4, 2014