Ending a marital union is never an easy process. However, being over the age of 50 can make the divorce process especially complicated in Texas and elsewhere. A couple of tips may help those who are getting divorced closer to their retirement years to protect their financial futures.
First, those going through divorce not long before reaching their retirement ages may want to secure new or part-time jobs. A new job may help a divorcing spouse to generate more monthly income than he or she is earning in his or her current job. In addition, a part-time job — or even consulting work — may help to produce extra income in preparation for retirement.
Second, not claiming Social Security retirement benefits right away might be a smart move for those contemplating retirement. However, claiming benefits early may be necessary given an individual’s financial situation. For those whose former spouses earned higher incomes, they might be eligible to claim benefits based on the former spouses’ employment records beginning at the age of 62. Qualifying for these benefits is possible as long as the marriage lasted a decade and the person seeking to claim benefits is still single.
Dissolving a marriage in Texas can understandably be stressful for both emotional and financial reasons. However, if two spouses find common ground when dealing with matters such as the division of retirement funds or alimony, they may save themselves a lot of stress, time and money by going through divorce mediation instead of litigation. Still, going to trial to have a judge make important financial decisions for the couple may be necessary if the couple cannot see eye to eye in these areas.
Source: wickedlocal.com, “7 ways to save for retirement if you divorce later in life“, Alan F. Auteri, March 13, 2018