As many readers in California know well, divorce can be difficult for many individuals who go through the process. Not only can emotions run high, but economic issues sometimes surface for people who are newly single. These issues typically include taxes and the financial consequences if the division of property that occurs in a divorce.
In fact, one recent study notes that the number of people over the age of 50 that are ending their marriages in divorce is on the rise. The study points out that only 10 percent of couples over the age of 50 went through a divorce in 1990. Now, the number is closer to 25 percent of all such couples.
For those who find that they are in the divorce process at an older age, there may be financial considerations. These include the division of assets such as retirement accounts and the family home. For some, there may be benefits to reviewing tax and other laws as they go through the process in an effort to save money.
When a couple seeks a divorce in California and decides to sell their family home, they may find that they owe a large tax bill due to the capital gains earned on the home. For some, the sale is better financially of it occurs while the spouses are still married. However, every situation and couple is different. Thus it is a good idea for spouses to seek information as they enter the divorce process so that they can ensure the best result for all involved.
Source: New York Post, “Divorce rates for married couples over 50 exploding, creating difficult financial issues for many older Americans,” Gregory Bresiger, Feb. 18, 2013