As divorce rates in Pennsylvania and the nation continue to decline, one age group continues to deal with a high rate of divorce. According to Investopedia, one in four divorcing couples are over 50, while 20 years ago just one in 10 fell into that age group. As older couples face issues that lead to divorce, there are common mistakes that they can avoid when the red flags start showing up.
One thing that divorcing couples need to consider is if it is worth it to keep the family home. It may seem nostalgic to hold onto the property, but it can quickly become a money pit if two incomes drop down to one. Anyone keeping the house after a divorce should consider if they can afford the taxes, mortgage and costs to keep the property updated.
Women may be at a more significant financial risk after divorce. Investopedia also reports that while income drops by about 25% for men after divorce, women look at a 40% drop in income. This becomes a more significant problem if one spouse has a better idea about the finances than another. When a divorce is on the horizon, both spouses should be interested in how much money the couple has, where their assets are and how to track life insurance policies and retirement accounts.
Forbes suggests that divorcing couples should also discuss the tax implications that come with spousal support. Current tax laws deny a tax deduction for those who pay spousal support, whereas previously the receiving spouse would be required to pay taxes on the income. With the current law, there is no alimony tax break for those paying support.
No matter what age couples divorce, there are many financial, mental and emotional mistakes that can be made. These often lead to lifetime problems, and an experienced family law attorney can help a person avoid these problems.