Wisconsin individuals who are going through divorce may have concerns regarding their finances after the split. However, this concern is even more acute for older couples. These individuals might worry about their ability to retire after their funds are divided during the divorce process. Another valid concern is how a person will be able to acquire employment later in life if he or she has spent decades out of the workforce to care for the couple’s children, for example.
One way that baby boomers can protect themselves during the divorce process is to learn about their finances. One spouse may often defer to the other spouse to handle finances. This is why it is important to pull credit reports for both spouses, as one spouse may discover that the other has developed credit in their own name only. Therefore, one spouse may not have the same development to their credit, affecting their future credit card and loan applications.
Once a baby boomer takes stock of his or her financial picture based on credit scores and balances in financial accounts, he or she can begin considering a divorce settlement. While the marital home is often a point of contention, it may not be worth fighting over. After evaluating the costs associated with maintaining the property and the income level that a baby boomer might have after the divorce, the best option may be to have the other spouse buy out his or her share. Then, they should make sure to take their name off the mortgage.
Individuals who are going through divorce may have a chance to negotiate a divorce settlement that is favorable to him or her. This settlement may take the form of asking for each spouse to retain his or her own retirement account and asking the other spouse to refinance the mortgage in a single name, among other possible courses of action.
Source: Fox Business, “Divorcing Baby Boomers: How to Get a Financial Grip“, Donna Fuscaldo, April 30, 2014
