Financial savvy helps women who divorce later in life

Women who divorce after the age of 50 face financial pitfalls they would not have had to dodge at a younger age.

If you are a member of this group, you must employ financial savvy to ensure a secure post-divorce future.

Understand your finances

If your spouse has been in charge of your marital finances, you must understand your current financial picture as well as what you are going to need to live on after the divorce is final. In addition to guidance from your divorce attorney, you may want a financial advisor to assist in this task.

Consider how you receive assets

You and your spouse probably have retirement accounts, vehicles, perhaps investment accounts and other valuable assets including the marital home. Many women want to keep the home they have loved and cared for, but is this a good idea? Your home is an illiquid asset, which will require maintenance and occasional repairs, not to mention the mortgage and property tax payments. The house may be a drain on your budget. You may do better with the receipt of liquid assets, such as a 401(k). Also, remember that tax implications associated with certain assets will affect the amount of money that is actually available to you after the divorce.

Expect a new lifestyle

If you are still working, you may have to postpone your retirement for a while. You may have to come up with a new budget and learn how to get along with less. In short, you may have to downsize and become used to a new and different lifestyle. Later-in-life divorce is not easy, but with determination and financial savvy, you can make it work.