Older couples in Maryland who want to get a divorce are part of a growing trend. The Pew Research Center states that the divorce rate for people age 50 and older is double what it was 25 years ago. These “gray divorces” often bring up unique challenges for the exes involved.
One aspect of an older person’s life that can be significantly impacted by a divorce is their finances. However, there are some things they can do to mitigate the negative impact to their financial future.
If an ex expects to receive alimony payments, they should make sure they’re named in a life insurance policy for the payer. Otherwise, there could be a significant financial hardship for the recipient if the ex-spouse who has to pay the alimony dies during the payment period. Individuals entitled to alimony may request that they be designated as beneficiary and owner of the insurance policy.
Spouses should also address Social Security benefits. If they were married for at least 10 years, divorcees may be eligible to receive the benefits of the ex-spouse. Whether or not the ex-spouse has remarried does not matter. The ex-spouse also does not have to be notified if someone is receiving funds based on their benefit.
It is also important that the titles and beneficiaries on all financial accounts be reviewed after the divorce. There can be unintended consequences, such as funds going to an ex-spouse.
A divorce attorney may advise clients of what steps should be taken to protect their financial future after a divorce. The attorney may litigate to ensure that clients receive favorable divorce settlement terms regarding the division of financial assets.