3 smart financial steps to take amid gray divorce

On Behalf of | Jul 28, 2021 | Divorce |

When you navigate a Texas divorce later on in life, the chances are good that you and your spouse have accumulated considerable assets and debts together. You may also have different priorities, such as saving enough for retirement, than younger individuals facing similar circumstances.

Per GoBankingRates, making certain moves before your divorce becomes final may help you get your finances in good shape. It may, too, give you your strongest shot at financial stability after your split. When divorcing at an older age, consider doing the following.

1. Consider shared debts

If you and your spouse have both of your names on any home loans, credit cards or other outstanding debts, remember that you are responsible for paying them off at least in part. Once you pay off any outstanding debts you share, remove your name from shared accounts so that you are no longer responsible for them moving forward.

2. Consider retirement logistics

When you or your spouse have retirement accounts, you must figure out how to split them. You may be able to do so on your own, or the courts may order a 50/50 split. However, you should recognize that removing money from certain retirement accounts may have tax and other implications.

3. Consider updating estate planning documents

During your marriage, you may have created an estate plan where your spouse was the primary beneficiary. However, you may not want him or her to hold that role after your split, so you may want to revisit this and other areas of your estate plan.

The financial steps while your divorce is ongoing may impact the rest of your life, so exercise care when navigating the financial side of your split.