For New Jersey seniors who are considering divorce, understanding the financial issues involved in the process is important. Dividing marital wealth is complicated, and when both spouses are at or beyond retirement age, those calculations become even more pressing. Alimony is one thing to consider, but there are many other issues that deserve attention in the early stages of a late-life divorce.
Alimony is common in long-term marriages, especially when one partner has set aside his or her own career path to care for the needs of the family. However, the manner in which retirement savings are split is also impactful. Dividing retirement accounts can also bring steep tax penalties, which can reduce the value of those assets for both parties.
The family home is another consideration. If the cost and trouble of maintaining the home is likely to become a burden, the best course of action is usually to sell the property and divide the proceeds. Being able to find a new home that is more in line with the needs of a senior citizen can be a comforting process, rather than a source of sadness. Having excess wealth to fund retirement is also well worth giving up the family home.
New Jersey spouses who are thinking about divorce should take the time to carefully consider these and related topics. Knowing what to expect allows both spouses an opportunity to chart a course of action that is in line with their long-term interests. Taking time to make informed decisions about alimony and many other issues is the absolute best way to proceed and can help create an outcome that enables security for all parties.