The dissolution of marriage in Massachusetts is an increasingly common occurrence for individuals approaching their golden years. Research shows that the divorce rate for those 50 years old and older has doubled during the past two and a half decades, and it continues to grow. A couple of tips may help those going through divorce near their retirement years to protect their best interests.
First, having life insurance in place is paramount. If an individual is receiving alimony payments from his or her ex-spouse, losing these payments due to the ex-spouse’s death could easily be financially catastrophic for the recipient. To prevent possible hardship in this situation, the person receiving alimony may want to ask to be named not only the beneficiary but also the owner of a life insurance coverage contract for the ex-spouse. This means he or she can keep making premium payments and be fully in control of the contract to make sure that it continues. The life insurance premium expense can be addressed as part of the couple’s divorce settlement agreement.
Another important consideration is to change the beneficiaries on all policies, as well as change the names on titles. This includes removing an ex-spouse from a list of beneficiaries for one’s life insurance policy, or getting rid of his or her name from a primary residence title, for example. This step is often neglected after a divorce has been finalized.
Divorce is one of the most traumatic events one may experience in Massachusetts. However, if two spouses can see eye to eye on how to deal with financial matters, they may be able to resolve their issues without further court intrusion. An attorney will strive to ensure that the client’s rights are protected during each step of this type of family law proceeding.
Source: marketwatch.com, “7 ways to manage financial pitfalls during a late-in-life divorce“, Melody Juge, Feb. 9, 2018