Although the end of a marriage can be stressful for any Maryland couple, those approaching their retirement years might find it can create a financial crisis. Issues such as health insurance, retirement plans and Social Security benefits could play a crucial role in the ability to live comfortably later in life, and a divorce could upset the balance in these and other areas. Before heading into divorce, it may be wise to evaluate whether timing could improve the financial impact.
In a high asset divorce, Social Security benefits might not present a huge concern. However, those approaching 10 years of marriage could lose their spousal benefits by divorcing before reaching that milestone, which could significantly impact retirement resources for those in modest income brackets. Timing the divorce could also be important if Medicare eligibility is imminent.
A family home can be a huge point of interest for divorcing parties, but trying to keep it could result in unmanageable expenses related to bearing the sole responsibility for mortgage payments and utility bills. Sentiment might be a reason for hanging on to such a property, but a manageable retirement may depend on setting sentiment aside in such matters. In the face of tighter finances, an individual might be better served by downsizing to keep post-divorce expenses in check.
Retirement assets could also be in play, which means that sound financial advice could be important for ensuring that tax obligations and other important factors are kept in view. A divorce lawyer might counsel a client to try to keep accounts that are funded with money that has already been taxed.