While the overall divorce rate has dropped, it is on the rise for older couples throughout the United States. Between 1990 and 2010, the divorce rate for people over 50 doubled. This means that retirement becomes an issue for many Texas couples.
Couples of all ages will need to have a good understanding of their finances and may face a drop in income. For women, this tends to be more than 40 percent while for men, it is around 23 percent. It may be necessary to consider downsizing as well as how to make extra income. Picking up a second job might be an option. Depending on a person's age, they may want to consider applying for Social Security early. There might also be reasons to delay the divorce if a person is close to the 10-year mark to qualify for payments on their spouse's Social Security contributions. Another thing to consider is that a person becomes eligible for Medicare at the age of 65, and this can be cheaper than some health plans.
Texas is a community property state, and retirement accounts are supposed to be split equally. People should look into how they might move retirement money into a new account without incurring a tax penalty.
Spouses who have not worked outside the home might be particularly concerned about their finances. Conversely, those who have always been the breadwinner might worry about how much spousal support they will need to pay. These concerns may be heightened for older couples because it may be more difficult for an older adult to train for and reenter the job market. Older adults who are facing divorce may want to discuss these and other financial issues with an attorney.