How to plan for a gray divorce

On Behalf of | Jun 4, 2020 | Divorce & Child Custody

The settlement decisions that one makes in a Pennsylvania divorce will have far-reaching impacts on his or her future financial prospects. This is even more true in a “gray divorce.” Thus, it is crucial to enter the divorce negotiations with a general plan. Even though one cannot entirely control what happens during the divorce, preparation is the key to emerging from the divorce with manageable financial prospects.

What makes a “gray divorce” challenging is that the married couple had common financial goals for many years. Now each divorced spouse will have his or her own financial interests as he or she prepares for retirement. It is the prospect of retirement that raises the stakes higher for the divorce negotiations. A misstep in the property division process can postpone one’s retirement plans for several years or more.

It is vital to sit down ahead of time to try to figure out how the divorce will affect both present and future financial aims. The best thing to do is to figure out exactly what is in the accounts and the general strategy for negotiating how they will be divided and settled. This should be compared against the issue of whether one’s lifestyle needs to be adjusted. However, having an idea of how the numbers will impact various scenarios will help with negotiating the divorce agreement in a way that minimizes the negative impact on a person’s finances.

Hiring an attorney with experience in divorce and child custody is a vital part of the divorce planning and execution necessary to achieve a manageable outcome. A lawyer might assist his or her clients with strategizing while educating them about what they can realistically expect. Not having an attorney during a divorce could lead to the missteps that can set back retirement plans because one simply does not know how the law would treat him or her if assets were divided by the court.

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