Getting a divorce at any age could have significant long-term financial implications. However, Colorado residents and others who get divorced at age 50 or older may face unique challenges that may be harder to recover from. For instance, there is a chance that an individual will no longer be covered by a former spouse's insurance plan. Therefore, that person might need to account for this additional expense when creating a long-term budget.
There is a good chance that an IRA or other retirement account will be divided in a divorce. In Colorado, assets are divided equitably, which means that one spouse may receive a larger portion of the account balance than the other. Regardless of how such an account is divided, it can have a significant impact on a person's ability to retire. Furthermore, the spouse who has the higher net worth at the end of a marriage may be required to make alimony payments.
These payments may need to be made until the recipient spouse dies. Finally, it is a good idea to consider the tax and other financial implications of keeping a family home. Depending on a person's financial situation at the time of the divorce, it may be best to sell the home and split the proceeds of the sale.
The end of a marriage may mean that an individual will have questions about how assets are divided or if he or she is entitled to alimony. An attorney may be able to answer those questions and take other steps to help a person obtain a favorable settlement. For instance, an attorney may help a person review a tax return to get a better understanding of that individual's household finances. Divorce cases may be resolved in court or by working with a mediator.