New York Times – How to Stop a Late-in-Life Divorce From Ruining Your Retirement

EXCERPT:

Focus on the Biggest Assets

One spouse hanging onto the house — which, along with retirement accounts, are typically the most valuable assets that couples hold — is common, divorce experts said. But it’s often a financial mistake, especially if the children are grown.

That’s because you typically have to trade a portion of retirement savings to buy out the other spouse at a time when you’re close to winding down a career or may already have stopped working, said Lili Vasileff, a certified divorce financial analyst in Greenwich, Conn. And, the most pressing financial need after a split is typically cash flow, so tying up funds in an illiquid asset isn’t helpful.

“I ask clients, ‘If the house will eat up 70 percent of your income, are you willing to sacrifice 70 percent of everything else in your budget to keep it?’” Ms. Vasileff said.“