Everyone’s priorities change to some extent as they move through their lives. That means the priorities of a couple who divorces in their 50s or older are likely very different than those of younger divorcing couples.
One of those priorities usually revolves around the home. As people marry, have children and earn more money, they tend to buy larger, costlier homes and more expensive items for those homes.
By the time their children are grown and independent, they may start thinking of downsizing to a smaller place. However, if they divorce, many older couples still find themselves fighting over that big, expensive house they’ve been living in — and all the assets in it.
Is trying to keep the home a cost-effective move?
If you find yourself doing that with your spouse, it’s wise to think about whether getting the house in the divorce is really a wise financial choice. Even if the mortgage is paid off, just maintaining the home can be costly – especially property taxes and insurance. One certified divorce financial analyst says, “If a home is going to be more than 70 percent of your net worth, you should consider whether you can really afford it.”
If your soon-to-be ex wants to buy out your share or agrees to sell it and split the proceeds, that’s probably a fair amount of money to add to your retirement savings, even after you’ve bought a small condo or decided to rent an apartment in a senior living community.
What assets are worth fighting for?
The same goes for valuable assets within the home. Too often, people fight over things they don’t even want or have space for, simply because they don’t want their spouse to get them.
The president of the American Academy of Matrimonial Lawyers says, “When couples fight about their stuff, they’re fighting more about the memories attached to the stuff than about its market value.”
This is important to think about when you’re dividing furniture, artwork and more sentimental items. Which of these do you really want and have a place for in a new, smaller home?
This isn’t to say you and your legal team shouldn’t work to seek the assets you want to leave the marriage with. However, by focusing on getting a fair share of the bank, investment and retirement accounts or maybe additional liquid assets in exchange for things you don’t need or want, you can leave the marriage with more financial freedom for the years ahead. As one certified financial therapist says, “The freedom in that can be deeply satisfying.”