How divorce can affect finances for those over age 50

If you are over age 50 and facing a separation, you are not alone. While divorce rates for those under the age of 40 have dropped over the last few decades, the rates for people ages 40 and over have seen an uptick — especially among the 50-and-over crowd. According to the Pew Research Center, the Gray Divorce rate has roughly doubled since the 1990s.

Older couples who have passed their peak earning years may have more assets (and more savings) than younger couples, so deciding how to divide them will be crucial. Here are a few tips to consider about your finances before and after your divorce paperwork is complete. Be sure to consult with your tax and legal professionals before engaging in any transaction.

• Taxes. With the Tax Cuts and Jobs Act of 2017, the rules for alimony significantly changed  and they still apply today. For couples who finalize their divorce under the new rules, the ex-spouse who is paying alimony can’t reduce his or her tax burden by claiming the payments as expenses. The spouse who is receiving the alimony will benefit, though, as he or she will not need to declare the payments as income. Anyone who divorced prior to the new laws will need to continue under the old rules.
• Retirement savings. In both contentious and amicable divorces, the split of retirement savings will need to be negotiated. Besides the obvious tally of any balances, divorcing couples should consider the tax benefits of each account when it comes to distributions. For example, if you have a Roth IRA and a traditional IRA that have the same balance, you may be tempted to consider them equal. But the Roth IRA would actually be worth more, as the taxes were paid on the funds as they were invested in the account, and distributions will be tax free. Likewise, divorcing couples should scrutinize the tax rules for 401(k)s and Health Savings Accounts.
• Social Security. The rules surrounding who is entitled to Social Security benefits for divorces can be complicated. But in general, if your marriage lasted 10 years and you are both over age 62, you’ll need to consider how Social Security will be divided. Social Security benefits differ based on your pre-retirement career, so the spouse who has lower benefits may be entitled to half of the spouse’s benefits who earned more.
• Children. Some people over age 50 will not need to consider custodial arrangements for their children, who may be legal adults. But if children and child-support payments are part of a divorce settlement, you should consider how they would affect your overall retirement plan and budget. In some cases, divorcees may consider staying in the workplace longer to make sure their retirement plans stay on track.
• Life insurance. As with any divorce, if your agreement has one ex-spouse paying the other for child support or alimony, the payee may need to have a life insurance policy in place to pay for the expenses in the event that he or she passes away.
• Living expenses. Before a divorce, a couple may be planning for the expenses of a single mortgage, but with a separation comes the need for both exes to either pay mortgages or rent. While you may have planned to stay in your current home through your retirement, you may want to consider downsizing so the cost of housing (and all related utilities) doesn’t disrupt your retirement planning.

You’ll also want to discuss your divorce plan with a financial professional to reevaluate your retirement goals and possibly reset your timelines. In the meantime, you can review the detailed tax guidelines for divorced and separated couples on the IRS website. 

Related story: Women are rethinking retirement style

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Yikes! What she found in her medical records was devastating

First off, understand this…

They’re YOUR medical records, so please don’t learn this the hard way!

Her story from deep in Texas -

Recently, someone applying for a new health plan and a life insurance policy learned something that truly shocked her. Written in her medical records was a diagnosis identified as a debilitating muscle disease and the doctor never told her about it!

You may have a medical condition listed in your medical records that you really do not have or do not know about!
In this woman’s case, it was eventually learned that the condition was not hers but was for another patient. It was mistakenly included in her medical record, and it took time and effort to get this mistake corrected.

Everyone should ask to see and get a copy of their health records from the Medical Information Bureau (MIB), if for no other reason, to see if you agree with the information that is being written about you.

It’s the law!  You have the right to obtain your medical records and other health information.  Like a credit bureau, there’s a Medical Information Bureau. Your MIB report shows key risk factors about you like health-related conditions. Other insurance companies can access, review, and confirm this information. This information is used mostly to prevent fraud if you apply again for certain types of insurance.

You are entitled to one free report from the MIB annually.

All Texans should call the MIB at 1-866-692-6901 and help them identify your file – if one exists.

Don't you want to know if there are ERRORS in your medical records?

Once you have your MIB report you can use it by asking your provider to change any wrong information in your file or, at least, to add information to your file if it is incomplete.
In most cases, the file should be changed within 60 days, but the hospital can take an extra 30 days if you are given a reason for the delay.

Call the MIB at 1-866-692-6901.
You can also request it online at:

mib.com - Request Your MIB Underwriting Services Consumer File

Get Yours TODAY! Protect your information.

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It’s just true - some prescriptions are expensive.

About 2003, my wife & I learned about how to reduce what we pay for RX . Now, we share with you! 

Many of these are TIPS are also from my clients

Some of our clients have used more than one of the services below to get FREE RX.

6 WAYS TO FIND LOWER COST RX in Texas