According to statistics, more and more baby boomers are getting divorced in Texas and throughout the country. Twenty years ago, only one in 10 divorced people were age 50 or older. Today, this number is one in four. This situation is especially difficult for women who may be subject to losing half of the funds in their retirement accounts while often having to pay for housing expenses with less income than their former spouse. Divorce can wreak havoc on finances for baby boomers, partly due to the decrease in the amount of time allotted to recuperate their savings.
One way that baby boomers can protect themselves financially is investigating their current financial state. This may be accomplished by pulling a credit report for both spouses. One spouse may have handled the finances and therefore may have put credit in their name only. This could mean that the other spouse's credit has not been developed to the same extent. Learning about a person's own credit score can help determine if credit is available and at what rate.
Another way that baby boomers can protect themselves is assessing their financial picture after the divorce. For some spouses, keeping a family home may be desirable but not economically feasible. In other words, the house may not be worth contesting over.
Individuals who are going through divorce later in life may seek legal counsel to help determine the various settlement arrangements that can help them manage their finances after divorce. An objective party may be able to analyze whether keeping a family residence is better for the person's finances or if he or she should try to sell the home to get more liquid assets, for example.
Source: Fox Business , "Divorcing Baby Boomers: How to Get a Financial Grip", Donna Fuscaldo, April 30, 2014