Older couples in divorce face unique financial challenges

On Behalf of | Sep 5, 2019 | Divorce

Older couples in Oklahoma who are ending their marriage and seeking a divorce might face certain financial challenges. There might be concern about the future, but older people can plan for life post-divorce and protect their financial interests.

In negotiating the divorce settlement, older adults can work toward reaching an agreement that is fair for both parties and that helps ensure their finances. The first concern for many older adults is alimony. Fair alimony is based on total compensation, not just base salary, so additional things need to be considered, such as stock options, allowances and compensation packages. The way the assets will be divided in each case is also another cause for concern. As an equitable distribution state, Oklahoma’s rules mean that all assets acquired during marriage will be divided fairly, which leaves it somewhat unclear.

Because older adults often have less time to make up loss of finances due to the divorce, life insurance can also be another way to protect themselves. In many cases, the person paying alimony is required to have life insurance so that in case they die, the alimony and any child support payments in the future are covered. As a way to ensure their interests, the person receiving support should be the owner of the policy and the beneficiary. There might also be the opportunity to receive Social Security based on an ex-spouse’s contribution if the marriage lasted at least 10 years and if certain other conditions were met. Pension and retirement accounts might be divided in the split, but there are certain conditions that must also be met.

Older adults who have decided to pursue a divorce may seek the assistance of a Tulsa, Oklahoma, divorce law firm to provide guidance through the process. A lawyer may explain state legislation, help their client understand their options and represent their client during negotiations and court appearances.