While all Georgia spouses may realize the impact of divorce, baby boomers may feel this impact even more acutely. One reason for this is because divorce later in life often means splitting up retirement accounts that have been funded for several decades. Just as a person is about to retire, he or she may suddenly see this retirement account split in two.
Baby boomers considering divorce can take a few steps to protect themselves, including investigating where they stand financially well before taking this plunge. Checking statements for retirement and bank and brokerage accounts can help illuminate a person's financial position. Because credit will be vital after divorce in order to buy an apartment, house or car, for example, individuals should also check both spouses' credit scores. Some spouses play a more passive role when it comes to finances and may discover that only their spouse's credit has improved during the course of their marriage.
Another concern for some baby boomers is reentering the workforce after being out of it for decades. However, there may be methods to help supplement income, such as receiving spousal benefits for Social Security. Alimony may be available in some cases when the spouses' levels of income are dissimilar. Negotiating health insurance coverage can also help ensure that both spouses' medical needs are provided for after the divorce.
Individuals who are going through a late-in-life divorce may seek the assistance of objective legal counsel. By taking this step, individuals may be able to learn about ways to protect their assets. They may also learn about ways to cushion the financial blow of getting a divorce at this point in their lives, such as being able to procure alimony.
Source: Fox Business , "Divorcing Baby Boomers: How to Get a Financial Grip", Donna Fuscaldo, April 30, 2014