Spouses over the age of 50 may have accumulated valuable assets during a long-term marriage. Depending on each individual’s plans for his or her lifestyle after divorce, spouses may need to consider their post-marital budgets carefully when negotiating property division.
As noted by Kiplinger’s Personal Finance, marital assets include income or business profits and stock, pension and retirement accounts. Both spouses have a right to receive a fair portion of these assets under Tennessee’s equitable distribution laws.
A division of income may need to cover a mortgage
If an individual’s sole income can cover fixed and variable living expenses such as a mortgage, he or she may have the means to maintain a current living situation. To take ownership of a shared home, however, an individual may also need to apply for a new mortgage.
As reported by Money magazine, a lender may require a down payment to refinance or approve a new mortgage. To cover the down payment and qualify, an individual may negotiate a cash payout from a couple’s other shared assets.
A divorce may change an individual’s lifestyle
Monthly income as a single earner is often significantly less than a married couple’s combined household incomes. By creating a workable post-divorce budget, an individual may determine whether he or she can maintain the same lifestyle as before.
If a single individual’s earnings cannot cover his or her expenses, the court may order spousal support. A payment arrangement may include living expenses for food, insurance and taxes.
Tennessee’s laws require soon-to-be ex-spouses to agree on a fair method of splitting their marital assets. A divorce settlement, for example, may include a lump sum cash payment from a divided business or retirement account.