In most states around the country, including Pennsylvania, divorce rates are decreasing with every age group except those over 50. In fact, one in four couples over 50 will go through what many call a gray divorce, and this age group has experienced a staggering 50 percent increase in divorce rates over the last 20 years. Often, these individuals are retired and have their own unique set of financial consequences of divorce to deal with.
Getting divorced can result in individuals having to rebuild their finances from scratch. However, there are some steps Pennsylvania residents can take to lessen the negative impact divorce can have on their financial future.
Pennsylvania couples who are getting divorced should be aware that making wrong decisions about how to divide retirement assets can be very costly in the long run. Legal and accounting professionals spend a lot of time rectifying the mistakes made by divorcing couples who mishandle their retirement accounts. It is important a legal agreement is in place to avoid having to pay a high tax bill or ending up with no retirement funds at all.
A divorce in Pennsylvania may become more contentious and complicated if one spouse believes the other is hiding assets. This was the case with a 61-year-old woman who was divorcing her spouse of 25 years. The woman had been the main support for a decade, but her husband wanted both the home and half of her 401(k) in the divorce. The woman also said that he was sharing financial information with her sister but not with her and her attorney.
Some people in Pennsylvania might wonder whether a spouse who does something unusual financially might be considering filing for divorce. One husband and wife sold their home and got $90,000 from it. They also both lost their jobs and got around $40,000 each. Without telling her husband, the woman opened an account in her name and put money from the house and from her job into it. The husband demanded that she put the money back into a joint account or add him to the account, but she did not.
Pennsylvania couples facing divorce should avoid a few common financial errors. One of those mistakes is not taking out a life insurance policy on an ex-spouse who is paying child or spousal support. This insurance can protect against loss of income in the event of the ex-spouse's death.
After a divorce, the financial situation will change for many Pennsylvania couples. It can be particularly hard financially on women. Married women earn more money than women who are separated, widowed, divorced or single, but despite this and the growing number of women in the workplace, they still earn less than men on average. Caregiving, which more often falls to women, may mean women only work part-time and have fewer opportunities for career advancement and saving money.
Pennsylvania residents might like to know about the legal ramifications of the divorce of Aisha Tyler and Jeff Tietjens. Tyler is an actress while Tietjens is a lawyer. The couple reportedly dated in college and married in 1994. They separated in 2015, and Tietjens filed for divorce in 2016.
When a Pennsylvania company's owners have a falling out, it can be an incredibly stressful time for an organization of any size. However, it can be just as difficult when the owners are married and their relationship is coming to an end. The worst may be when a couple starts a business together and then they split up.
Pennsylvania families who are concerned about protecting their children's business interests in a divorce from future spouses may want to look at trust options. However, a trust will not solve the issue of dividing a business if a couple owns one together and gets a divorce. One may be unable to buy the other out because most of their assets may be tied up in the business. If a couple has a prenup in place, that might cover the process, but if they do not, there are other options. A buy-sell or buyout agreement prepared before the wedding might be an alternative to a prenup.