Dissolving a marriage in New York can be hassle at any age and no matter how long a marriage lasted. However, it can be particularly unsettling for those nearing retirement. A few tips might help those going through divorce to prepare for the future financially as effectively as possible.
An important first step is to determine one’s available income following divorce. This includes income from a job, from Social Security and from any remaining retirement assets. A financial analyst who specializes in divorce or a financial planner may help with determining how much money can be safely generated from funds in a 401(k) or an IRA, for example.
Then, the next step is to create a budget to ensure that monthly obligations can continue to be met following divorce. If possible, paying off any large debts before retirement can help to mitigate financial burdens during one’s golden years. It frees up money that can go toward continuing household expenses, groceries and medications. An important expense to keep in mind is health insurance for those who do not yet qualify for Medicare. This budget line item can be expensive for those who are not covered by an employer health insurance plan.
Finances can be difficult to sort out even during marriage, so it can understandably seem impossible to master during divorce. However, an attorney in New York can help with making decisions such as how to split financial assets during divorce or whether to keep the family home following divorce. An applied understanding of the law may help those going through divorce to avoid making mistakes that will cost them financially down the road.
Source: investopedia.com, “7 Steps to Being Prepared to Be Single After Retirement“, Katie Moore, Dec. 1, 2017