Couples divorcing in their 50s or later often face tough decisions about their financial futures. One major concern is long-term care. As people age, they may need help with daily activities, medical care, or housing. Planning for these needs during divorce serves as a protection for both parties.
Understanding long-term care needs
Long-term care includes services such as assisted living, home health care, and nursing homes. These options can be expensive, especially without proper planning. Couples going through a gray divorce in Illinois should assess their future health and care needs. This includes reviewing current health conditions, family history, and potential costs of care.
Each spouse should consider how they might manage these expenses on their own after the divorce. For example, one spouse may need to update health insurance or invest in long-term care insurance. Others may need to think about downsizing or adjusting their retirement plans. Splitting marital assets fairly should include discussions about covering these future care costs.
Taking steps to secure financial stability
Dividing retirement accounts, pensions, and Social Security benefits should reflect future care needs. Illinois follows an equitable distribution model. This means a fair division of property but not necessarily mathematically equal. One strategy is to prioritize keeping assets that can help with long-term care expenses, like savings or investments.
Housing is another key factor. If one spouse keeps the marital home, they need to consider if they can maintain it financially. Selling the home and splitting the proceeds may be a better choice to free up funds for care.
Spouses should also explore government benefits like Medicare and Medicaid. These programs can help cover certain long-term care costs. However, eligibility requirements vary, so planning early is important.
By understanding one’s needs and making smart decisions, those going through a gray divorce can protect themselves in the years ahead. Being proactive about these concerns ensures both spouses can focus on living comfortably in their later years.