With divorce on the rise among older couples, attorneys in Kentucky may be working with more clients who are concerned about protecting their retirement. There are several considerations specific to older divorced couples. For example, some people may not be aware that after retirement, they might be eligible to draw benefits on an ex-spouse’s Social Security contributions if they were married for at least 10 years.
If one spouse is supposed to pay alimony to the other, it is important to correctly assess the income of the paying spouse. For older adults, career advancements could mean that in addition to a salary, there are ownerships in various companies, stock options and more. This should all be taken into account. The person paying alimony might also be required to carry a life insurance policy. This can help ensure that if the person dies, the recipient will still receive payments that could be critical to financial security.
Kentucky is an equitable property state. This means that shared property will be divided equitably. However, over decades of marriage, it may be difficult in some cases to determine what is individual property and what is shared property. This may be particularly true for assets brought into the marriage that have appreciated in value.
Another consideration for divorcing couples is how to divide debt. This can be complicated because the debt may be the responsibility of both spouses but in only one spouse’s name. The couple can make an agreement to pay off the debt together, but creditors are generally not concerned with what is in the divorce agreement. They will pursue the person in whose name the debt was taken out. Therefore, people may want to include a provision in the agreement addressing what may happen if one person does not pay a fair share of the debt.