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Divorce Archives

Dealing with finances during a "gray divorce"

A growing number of older Americans in Kentucky and across the country are choosing to end their marriages. While divorce rates have held steady or even declined across the American population as a whole, "gray divorce" rates have doubled since 1990 for people age 50 and older. As is the case for younger couples, divorce is more likely when a couple is married for a second time or when they have only been together for a few years. However, many older couples divorcing have been together for many years or even decades.

Understanding the health-related impact of gray divorce

Choosing to untie the knot can have a serious health-related impact on anyone in Kentucky regardless of age. This is why it ranks as the number two stressor on a scale that predicts what life events are most likely to result in a stress-induced breakdown within a two-year period. For couples 50 and over, uncoupling can be even more impactful on health. What's more, while divorce rates have fallen for people 40 and under, they have doubled for older adults since 1990 - a phenomenon often referred to as "gray divorce."

Divorce doesn't get easier to manage with age

Research indicates that women who come from divorced families are 60 percent more likely to go through a divorce themselves. For men who come from divorced families, it's 35 percent. Kentucky couples who have beaten the odds by staying married until they reach an older age need to be acutely aware of these risks. That's because divorce has become more socially acceptable and common, and this is especially true for couples past the age of 60.

New tax laws that could impact divorce planning

In 2015, more than 600,000 taxpayers across the country, including many in Kentucky, were able to claim a deduction for alimony payments. However, thanks to the Tax Cuts and Jobs Act, alimony will no longer be deductible by the individual paying it and the income will no longer be taxed for the individual receiving it as of 2018.

Renewing a retirement plan after a divorce

Kentucky residents who decide to divorce may face more significant, longer-lasting financial changes that far outweigh the emotional issues that can accompany the end of a marriage. After years of building savings accounts, the division of assets that comes with divorce can lead to major changes in each partner's budget and approach to spending. One of the most significant asset types dealt with during a divorce is the couple's retirement savings. These funds are often a couple's largest single asset, and the distribution that comes with the divorce may spark each partner to begin saving intensively for the future.

Student loan debt is ruining some marriages

The average student loan debt for new college graduates in 2017 was nearly $40,000. Unfortunately, those high levels of debt could lead some Kentucky couples to divorce. Research from Student Loan Hero shows that 13 percent of divorcees blame student debt specifically for their splits while more than a third said it was at least partly responsible. Some financial experts are surprised that the numbers aren't higher as outstanding student loan debt has more than doubled during the past decade.

How to keep emotions in check during a divorce

Divorce can be an emotional time for Kentucky residents and anyone else going through it. Therefore, it can be tempting to try and win the divorce by any means necessary. Of course, the truth is that no one really wins in a divorce even if most people claim that their former spouses got the better deal in the settlement. This is because all parties to the end of a marriage have to adjust to their new realities.

Divorce support obligations and bankruptcy

Divorced parents in Kentucky who get a divorce may be financially overwhelmed. In addition to debts like credit cards, they may also have past-due alimony or child support payments. While the bankruptcy process cannot be used to eliminate delinquent domestic support obligations, it may still be helpful with managing the past-due payments.

Divorce and finances

Women in Kentucky who get a divorce may already be aware that the process could have a negative impact on their finances. However, they should also be prepared for any unexpected financial developments that are likely to occur.