Divorce is a financially complex process, and Texas couples will have to divide all of the assets accumulated over the course of the marriage. This can be especially difficult when two people are older or have been married for a long time. Gray divorce, which is a divorce involving two spouses over the age of 50, can be particularly complicated when it comes to property division.
One important consideration when dividing marital property is to consider tax penalties. Newer tax laws mean that the spouse who is paying alimony is no longer getting a tax break, which mean he or she may be motivated to negotiate a lower spousal support payment in exchange for a higher portion of retirement savings or other assets. The other spouse will want to consider the potential tax penalties that may come with retaining a valuable asset.
Another way to protect financial interests after a divorce is to consider steps both before and after the process is final. From changing the estate plan to deciding on the most appropriate way to divide marital assets, there is significant benefit in working with experienced Texas legal and financial professionals. The implications of a gray divorce are significant, especially for those nearing retirement age.
In a gray divorce, property division will have a drastic impact on plans for retirement and long-term objectives. While adjustments will be necessary, it is possible to secure terms that allow for future stability and security. Before making any important decisions or agreeing to the terms of a settlement, it is prudent to consider tax implications and other potential consequences to these choices.