Don’t Make These Big Divorce Mistakes If You Are Over 50
Divorce after 50 is becoming increasingly common. For those entering this life change with significant retirement savings and other assets, the stakes are high—and so are the risks of costly mistakes. Let’s take a look at two of the most commonly made mistakes:
1. Failure To Be Financially Educated
One of the biggest missteps many people over 50 make during divorce is failing to educate themselves before making important financial decisions. During a marriage, it is not uncommon for one spouse to take the lead in handling the family’s finances. But when divorce happens, especially for the spouse who hasn’t been actively involved in budgeting or financial planning, this knowledge gap can be a major liability.
In many cases—still most often affecting women—this spouse may not fully understand what they need to live comfortably post-divorce. Without that financial insight, they may overlook important steps like creating a post-divorce budget or analyzing how much income will be needed to maintain their lifestyle. That’s where working with a Certified Divorce Financial Analyst (CDFA) can be a game-changer. A CDFA helps bridge the knowledge gap, ensuring the less financially experienced spouse doesn’t unknowingly agree to a settlement that leaves them struggling down the road.
2. Failure To Understand the Issues from Dividing Assets
Another major pitfall? Not considering the tax implications of dividing assets. Many assume that a “fair” split of property means simply dividing things equally—one spouse keeps the house, the other gets the retirement accounts. But all assets are not created equal! Retirement funds often come with tax burdens when withdrawn, while a home has ongoing expenses like maintenance, repairs, and property taxes. Without understanding these differences, a fair trade can become a financial trap.
Take the example of someone who fights to keep the marital home, thinking it provides stability. While emotionally comforting, that decision might backfire if they can’t afford the upkeep or taxes. Meanwhile, the other spouse walks away with retirement accounts that continue to grow—and may have a more secure financial future as a result.
Avoid These Mistakes by Seeking Professional Advice
Ultimately, the key to avoiding these mistakes is education and support. Before signing any settlement papers, you should speak with professionals who can help untangle the financial consequences. That includes financial advisors, accountants, and divorce professionals who understand the unique dynamics of late-life divorce.
Divorce after 50 does not have to mean financial devastation—but it does require smart planning. By avoiding these common mistakes, you can set yourself up for a more secure and stable future.
Lynette Kim is an experienced family law attorney based in Los Angeles specializing in Mediation and Collaborative Divorce. She can help you through the rough waters of divorce, resulting in a positive outcome and bright future.
The Kim Mediation and Law Center is located at 3701 Wilshire Blvd in Los Angeles, CA. You may make an appointment by calling 213-351-1000 or visit www.kimmediationandlaw.com
Compassion for my clients is important to me, and that’s why I’ve remained a family law practitioner for 30 years — and still love what I do. I’m keenly aware of the emotional toll divorce can have on you and your family. As you navigate the rough waters of transition, my team and I will help you find your balance. We’re here to support you in making the best decisions for your future. I’ve seen the positive results again and again when couples embrace meditation or collaborative divorce. I’d be honored to share these practices with you and set your family on a healthy path.
