There seems to be a growing number of older (boomers) divorces according to a paper by the National Center for Family and Marriage Research at Bowling Green State University. This means that newly single older Americans are suddenly facing difficult financial issues, including funding their retirement.

The first thing they have to face is dividing their assets.  The assets you decide that you want and give up when negotiating your divorce are very critical to your future.

For example, if you decide to keep your house instead of getting  maintenance, then what are you going to live on? You may have in mind that you will sell the house after your divorce and then have the liquid assets. But you need to be aware that your marital status will dramatically affect the taxes you will pay. The exclusion from the capital-gains tax is more generous for a married couple. It would be better to sell your house before the divorce is final and take advantage of the tax break of being married. In 2013 the exclusion for a primary residence is $500,000 for a married couple, but only $250,000 for a someone who is single.  Another issue to consider is if you or your spouse end up with all the qualified retirement assets, it may be a tax problem.

It is very important that you consult with your accountant before you make any decisions when you are negotiating your divorce settlement. Don’t rush into anything.  You have to be careful and wise when making decisions that will affect you the rest of your life.