Asset Protection Tips for Boomers Facing Divorce
The divorce rate is rising most rapidly among the 50+ age group in the U.S., and estate planning experts are advising boomers to look at tax and retirement consequences when creating a favorable settlement for both parties. Here are some tips:
Create a financial plan - focus on long-term planning versus short-term gain. The last several years have had a dramatic impact on a lot of boomer's assets, and one of the biggest concerns for divorcing boomers is if there will be enough to support both spouses. Before negotiating a settlement, understand what you need to take care of yourself now and in the future.
Create a budget - list the expenses necessary to maintain your current lifestyle as a single person to get a realistic picture of your new budget. Evaluate your income and spending habits and, if possible, work with your soon-to-be ex to come up with equitable goals.
Protect yourself - be on guard against a spouse cleaning out accounts or taking a loan against assets. You can set up an alert with your bank to advise of any changes in account status.
Think strategically - often, splitting assets like retirement accounts and pension plans equally is not the best strategy. Divorcing boomers need to consider the pros and cons of keeping each asset; keeping the house may be a sentimental choice but could end up being a foolish financial decision.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0041.