How can I recover financially after a gray divorce?

On Behalf of | Jul 22, 2021 | Divorce

Regardless of one’s circumstances, divorce seldom, if ever, leaves spouses in a better financial position than when they were married. After all, getting divorced is seldom a financial decision, it is usually an emotional decision and a path to a new, happier, life. However, for those later in life getting a divorce, so called, gray divorces, figuring out how to weather the financial divorce storm can be especially problematic.

The numbers

According to Ohio State University, a study of divorce found that a family’s wealth dropped by 77 percent over their the long-term. Of course, if one is a Gates or a Bezos, this likely will not matter as both spouses will still likely be billionaires or extremely wealthy nonetheless. For the rest of us though, these numbers matter.

Emotional stability

While it may not seem like financial advice, according to experts, one of the best bits of advice to ensuring financial stability post-divorce is keeping one’s emotions in check. A bitter fight only siphons money away to the state and attorneys. Conversely, emotional deprecation or depression can cause one to give up what was rightfully theirs.

Creditors

Do not just focus on assets during the property division process, like the family home and checking/savings accounts. Remember, just because one is getting a divorce, it does not mean they are divorcing their creditors. If one’s name is on an account, even if the other person gets it, the person who is named on the account can still be sued over the debt. This is why it is so important to get accounts in the name of the proposed debtor post-divorce.

A strong support team is essential

Of course, a divorce attorney should be one’s first call, but that is not the only person one needs on their Oakland, California, high-asset divorce team. At the very least, sometimes, a CPA is needed. Other times, other service providers are needed, like counselors, forensic accountants, etc. Luckily, one’s divorce attorney should be able to coordinate these experts, when needed.