Regardless of their ages or how long they have been married, some California residents may come to the conclusion that their marriages are not working. When older individuals decide to separate, the process is commonly referred to as a gray divorce. There are many issues that individuals may face during such a process that younger parties may not, and as a result, older couples may wish to prepare for the subsequent financial impacts.
Many married individuals may have become accustomed to the way their finances are handled. When these parties go through divorce, their assets and funds will likely be divided in accordance with state laws. As a result, individuals may find themselves facing new single households and discovering that the endeavor may be more expensive than they realized. Therefore, it may be prudent for parties to plan for such expenses ahead of time by separating funds and working on negotiations.
There are different areas during the divorce process that may be useful for negotiation. For example, property division is often a hot topic, and if individuals are hoping to achieve a certain goal -- such as lowering or doing away with potential alimony -- they may wish to use their assets as a negotiating tool. A willingness to part with property may allow individuals to have more leverage in other areas.
As California residents get closer to retirement, their finances may become more of a concern. Therefore, individuals hoping to start a new phase of life during their golden years may want to ensure that a divorce does not derail their plans. Interested parties may wish to consult with experienced attorneys in order to determine the most feasible paths for achieving their desired outcomes.
Source: Fox Business, "Can You Lose Your 401k in a Divorce?", Casey Dowd, Aug. 11, 2016