Many California residents try to plan for their financial futures as well as they can. This need to plan may be even more prevalent among older individuals who are approaching retirement. However, there is a chance that unexpected occurrences like divorce might pop up, and some individuals may find themselves looking for ways to protect their finances.
When individuals over the age of 50 end their marriages, it is commonly known as a gray divorce. During these proceedings there is a chance for considerable upheaval when it comes to finances. Therefore, individuals may want to make sure that they have the necessary paperwork in order to protect themselves and their accounts as much as possible. By updating bank accounts and estate plans, individuals may be able to potentially avoid unnecessary complications during the divorce.
Additionally, parties may also want to have their assets assessed for value and learn how they may be considered during the proceedings. For instance, $100,000 in a checking account and $100,000 in home equity may initially seem like the same amount, but they could have differing effects on a person's finances. Therefore, individuals may want to determine how the value of assets could change and how they would like to move forward during property division proceedings as a result of that information.
There are several aspects of divorce that could play a role in the future finances of the affected parties. Being knowledgeable and planning ahead for the potential effects could help older California residents face less negative impacts. Individuals who are interested in creating a plan for their divorce proceedings may wish to speak with experienced attorneys.
Source: ABC News, "Keeping Some Green in Gray Divorce", Sarah Skidmore Sell, Sept. 7, 2016