Today’s Baby Boomers are aging, and some are finding that after the children have flown the nest or they are near or at retirement that they have grown apart from their spouse or simply have different desires for how they want to live during their retirement. In fact, divorce among those 50 and older has become so commonplace that it is referred to as a “gray divorce.” The following are some tips on how Baby Boomers can prepare financially for their life post-divorce.
Identify your assets and debts
Just like you need to identify your assets and debts for the property division process in a divorce you also need to consider how your life will be different post-divorce. You will be living in your own home with the same fixed expenses you used to share. You may need to buy your own vehicle and you will have to pay for insurance. It is important to know what you are working with pre-divorce so you can plan for the future.
Develop a post-divorce budget
You will need a post-divorce budget to ensure you can comfortably pay for life’s basic expenses as well as have a bit of savings for unexpected needs. Do not rush into buying new items and recognize that you will have to pay for your housing on a single income. If you receive spousal support, those payments can be budgeted into living expenses, taxes and savings.
Future goals may need to be put on hold
You may have an idea of what your goals are not that you are divorced, such as traveling or buying a new car. However, you will need to look your cashflow to see how much you can spend on these extra expenses. You may have to put some future goals on hold. Prioritizing your needs can help you stick to your new budget. You can revisit your budget twice a year to ensure it still meets your current needs and reasonable goals.
Learn more about divorce in Ohio
Whether you are going through a “gray divorce” or are divorcing earlier in life, you need to prepare financially for the fact that your life will soon change in a big way. This post is for informational purposes only and does not contain legal advice. Our firm’s webpage on divorce may be of interest to those who want to learn more about this topic.