The process of getting divorced in Texas can have a massive impact on an individual’s finances. However, the effects of divorce are generally even greater for those who are near retirement. The reason for this is that funds that were initially meant to cover one household for retirement must now cover two households.
During a divorce that happens later in life, called a gray divorce, it is paramount that both spouses have a strong grasp of their finances. Only then will they be able to determine how much they can spend each month following the divorce versus before the divorce. In addition, it is important that a person who is getting divorced later in life fully assess whether it would be in his or her best interest to give up retirement assets in exchange for keeping the marital home.
The challenge with keeping the home is that it comes with property taxes and maintenance costs. These expenses can be hard to stay on top of without the other party’s income following the divorce. On top of this, the person who gives up retirement money to keep the house becomes vulnerable when it comes to being prepared for his or her golden years.
Divorce is often complicated when it comes to finances and property division. However, if the parties can find common ground on how to divide their assets and approach spousal maintenance, for example, they may be able to reach a settlement, thus avoiding further court intrusion. A family law attorney in Texas can provide the guidance needed to achieve a comprehensive and binding settlement.