Gray divorce is on the rise across the country. As people live longer, couples in their 50s and 60s with no children at home realize they no longer share the same interest with their spouses. They also realize they don’t want to spend the next 20 or 30 years with someone they don’t really know.
While there are many reasons for gray divorce, this is commonly cited by those filing for divorce at an advanced age. Even though gray divorce is becoming more mainstream, there are some financial considerations to keep in mind.
After all, if you are older, it means you have a lifetime of investments, savings, assets and more to consider that younger couples don’t have to deal with. Understanding some of the unique financial situations you may face can help you prepare for the future.
Will divorcing require you to alter your lifestyle?
Sometimes, after a divorce, older couples will experience significant lifestyle changes. Moving from a two-income to a single-income house can be a big change for some.
However, even if your lifestyle won’t change, be sure you have access to liquid savings in case you must rely on your resources to meet your personal needs. It’s also smart to build an emergency fund to cover six to 12 months of your living expenses.
How will divorce impact your retirement savings and timeline?
As mentioned above, those in an older demographic often have acquired substantial retirement investments. Even if just one spouse has retirement assets, they must be divided and shared during a divorce. Be sure you know how to divide these assets properly since each type of savings has different methods to use.
Protecting your financial future after a gray divorce
If you are going through a gray divorce, be sure to plan for your finances. Knowing your legal options will help with this.
