On slow news days, the media occasionally covers the fact that there is an increase in divorce among older Americans.
Divorce attorneys in Vancouver, WA know that for most people, divorce brings financial challenges. These challenges, however, are significantly different when you are an older couple who is separating.
Couples who marry in their twenties or thirties will need help ensuring that the available income allows for two functional households. Normally, incomes increase during these years whether through promotions, salary increases or one of the spouses entering the work force. When younger couples get divorced there is time for each spouse to work at getting on their feet financially.
When an older couple gets divorce, the scenario is different. There is less likelihood for a spouse to become re-educated or to re-enter the workforce. An older couple must decide how to make the existing resources last during retirement and the remainder of their lives.
When finances are limited, Social Security benefits become very important. You will need to take the time to learn and apply strategies to maximize Social Security benefits. Good planning can make a big difference. While some techniques are available only to married couples, there remain options for divorced spouses.
You want to have the finances you need even after a divorce during later life.
Let’s consider some of the following:
- Even though social security benefits get a preferred tax treatment, this does not mean they are tax free. Before taking out your social security, consider the tax implications.
- If you take out your Social Security benefits as early as age 62, the monthly benefit will be lower than if you wait. Up to age 70, the longer you wait the higher the monthly benefit.
- Spousal Benefits. If you are at least 62 years old, were formerly married for at least ten years and your former spouse qualifies for social security benefits, and you do not qualify on your own for a higher benefit, then you can apply for spousal Social Security benefits based on 50% of your former spouse’s benefits at full retirement age. A working spouse is allowed to apply for Social Security benefits, but immediately suspends receipt. That allows the working spouse’s benefits to continue to grow while the spousal benefit is received.
Contact a qualified Washington State family law attorney to better understand you benefits and options if you are divorcing later in life. Call 360-737-1473. Click here to read more about Lambert Law Office.
Lambert Law can help you with your planning regardless of your age.