Despite spending a long time together differences may still happen between married couples and they may decide to choose their separate path by taking a divorce. When divorce happens after retirement, it requires a complete reset of the entire financial plan and divorcing individuals have to plan everything from scratch. Retirees must plan the divorce without rushing into emotional distress. Here are some important points that retirees should keep in mind to prepare financially when they have to go through a divorce process.

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Think Again Before You Go Ahead With A Divorce

Divorce can be distressful from emotional as well as financial points. Before going ahead with a divorce decision, the couple should consult a marriage counsellor and try to find a way to avoid the break-up. Divorce is not only distressing for the couples but also for their children and close relatives. Usually, children of retirees become self-dependent and adults, so they may not face issues related to child custody and their care. However, retirees have to depend on their retirement corpus to meet their expenses therefore if going ahead with the divorce decision, then it becomes important for the separating individuals to secure their financial interests.

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Take The Help Of An Expert Lawyer

You should consult a good lawyer to present your case for divorce to the court. Avoid from case getting into an uglier fight by opting for a separation with mutual consent. Women who can’t afford to hire legal support can get free legal aid available at the court. Women’s State Commission and women’s welfare associations also provide legal support for women who need it.

Prepare For A Compensation

Depending on your salary and the financial needs of your separating partner, usually, the court decides the size of compensation that would be awarded to the wife. In a divorce case, the wife who is not able to meet her expenses is entitled to receive alimony from the husband. If you have to give compensation to your wife, make sure you have a list of your assets and income documents ready. If you are female and looking to receive compensation, make sure that you are aware of your financial requirements and demand the compensation accordingly so that you don’t fall short of money at a later stage in your life.

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Realign Your Retirement Plan

After separation, your financial requirements will change due to changes in financial obligations. You need to realign your retirement plan in sync with changes in your retirement goals and available retirement corpus. You also need to check your insurance needs after the divorce. You may take a new credit card after the divorce, open a new bank account, take care of your ITR of your own and if required you may buy essential assets like a car or bike.

You must try all possible ways to avoid divorce after your retirement because you can recover from financial and separation-related issues but it can be very difficult for you to recover from emotional trauma at old age.

The author is an independent financial journalist.