New Jersey may be affected by a growing divorce trend. According to a recent article, about 20 years ago, only 10 percent of divorced couples were over the age of 50. Now, about 25 percent of divorced couples are part of that age group.
Divorce can be detrimental to the financial situations of individuals who have been married for a long time. This is especially true for marriages where a majority of financial decisions were made by one party. Not being familiar with the household’s accounts can make discussions concerning spousal support and asset division difficult, and if the couple used credit cards that were only in the name of one party, it may be hard for the other party to pursue loans and separate credit cards because of his or her limited credit history.
The credit score is only one of many factors that a newly divorced individual will need to consider. Financial assets like bank accounts, investment accounts and retirement accounts need to be examined when dividing assets, and the couple may also need to decide how to divide the family home. When considering who keeps the house, an individual needs to consider both the cost of buying out the other party and the cost of maintaining the home.
In addition to dealing with how much a person has to pay, an individual also needs to consider varying sources of income. For example, older couples who have been married for more than 10 years may still be able to collect a portion of their former partners’ Social Security benefits.
Keeping track of the different factors that affect a person’s future after a divorce can be difficult. However, an attorney could help a client focus on financial stability throughout divorce proceedings.
Source: Fox Business , “Divorcing Baby Boomers: How to Get a Financial Grip“, Donna Fuscaldo , April 30, 2014