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Divorce issues can include financial strain for older couples

Thursday, July 27, 2017

For any individual seeking to end a marriage, there are a variety of issues that must be considered before these arrangements are made. Texas residents know that divorce issues almost always include finances, as the division of debts and assets is critical in the divorce process. This is especially true for people experiencing so-called "grey divorce," which occurs when one or both spouses are over the age of 50. 

For these individuals, the financial strain of divorce is often counterintuitively both easier and more difficult to shoulder. Some individuals in that age group have more financial security than younger people, but they are also looking forward to a financial future on a single income, for which they may not have planned. For individuals who are entitled to keep the marital homes, however, there is an additional option. 

People over 55 who own their homes are entitled to access up to 50 percent of their homes' equity via reverse mortgages. This allows a homeowner to access tax-free money without having to pay interest on a loan. For some individuals going through divorce, this could be a welcome boon. 

However, it is very important for Texas residents to remember that divorce issues can be tricky to navigate, particularly issues that pertain to finances. Seeking legal and financial advice well in advance of the divorce proceedings is a wise idea to help both individuals prepare for the complexities of divorce. Being prepared in advance, with full knowledge of what to expect, can make all the difference in the world to both spouses before, during and after their divorce. 

Source: castanet.com, "Divorce in retirement", Laurie Baird, April 25, 2016

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