It can feel scary to think about uprooting from a spouse when you are nearing retirement age. Choosing to end your marriage later in life has its own unique fears and concerns associated with it. At this stage of your life, financial stability is highly important, as well as securing yourself a reliable place to call home.
Your future financial stability depends on assessing and dividing your marital assets. If one or both spouses are retired, this will likely cancel out the need for spousal support. However, your retirement savings, 401(k) or IRA and property are the focus of asset division.
Reverse mortgage for splitting a home
Making a mortgage payment can be a heavy burden when covering this expense on your own. A reverse mortgage provides an option that could create a win-win for divorcing couples. It would allow one spouse to have a liquefied amount, while the other to stay in the home without having a mortgage payment to sustain. This option is available for homeowners who are age 62 or older.
Retirement income challenges
Retirement savings typically get split evenly after a divorce of this nature. The problem is that although this amount may be fairly distributed, your individual costs tend to increase. You and your ex-spouse will be supporting yourselves independently, which can be difficult when your income is limited.
Starting over can seem daunting, but it helps to know what to expect and prepare yourself for these new changes in advance. The key to making this transition as smooth as possible is ensuring legal decisions leave you with financial security. Consider looking into financial options like a reverse mortgage and housing that you can afford on a fixed income.