In recent years, the divorce rate for couples over the age of 50 has been on the rise. This is often referred to as a “gray divorce.”
While getting divorced later in life can have financial implications for both parties, it is essential to consider how this decision will impact your long-term financial security.
Gray divorces can be financially devastating
The last decade has seen a growth in the number of gray divorces or divorces among couples over 50. This phenomenon is attributed to a variety of factors, such as greater financial independence for older adults and improved longevity leaving more years for individuals to pursue separate interests.
Unfortunately, the end of a long marriage can come with significant financial implications. Because gray divorces happen later in life, people often have fewer working years remaining to build back retirement savings once they have been divided. Furthermore, the costs associated with untying marital assets and legal fees eat away at whatever liquid funds may exist. Couples considering a divorce should plan ahead to be aware of any potential tax burdens and the costs involved in maintaining separate identities after the divorce is finalized.
You will need to financially prepare yourself for this life change by getting organized with your finances before the legal proceedings. Make sure that all the information regarding assets and debts is pulled together; having access to this data will make it easier to negotiate the division of marital assets during a divorce settlement.
It’s crucial for those going through a gray divorce to seek help in navigating the complex process associated with this kind of divorce. It can make all the difference and ensure your financial future is secure.