Can You Afford Your “Gray” Divorce?

Are you facing a divorce in your 50s, 60s, or 70s? You are in good company. According to a report from the American Association of Retired Persons (AARP), the divorce rate for those over 50 has ben increasingly rapidly. And the older the person, the faster this rate of change.

A variety of factors from extended lifespans, changing life seasons, differences in values as partners age, as well as changing family structures may make divorce the best option forward. Divorce no longer carries the stigma that it used to, so older spouses who are unhappy no longer feel they have to remain married to avoid shame.

If you’re in your retirement years, you may find this is a unique time to be divorcing your spouse and it can come with its challenges and opportunities.

Affording your financial future

Divorcing in your 50s (or older!) with retirement concerns requires planning and education. As you enter this new season of life the majority of your resources will likely be coming from longer-term investments which can take more know-how to manage. You need to know where your retirement plans, investments, and joint savings accounts are, how much is in your accounts, and how much you are entitled to receive.

But more importantly, there are significant concerns about whether you can AFFORD to get divorced. You and your spouse planned one retirement, one house, one set of living expenses…. All with ONE retirement account. And now you have to split that account in half, but pay for two households. The financial aspect of gray divorce can be daunting.

Gather professional resources

There are lots of professionals who can help you understand your options and opportunities. Consider utilizing a financial planner, especially one who is a certified divorce financial analyst (CDFA). The understand the divorce process and can help you figure out how to make your retirement years work financially. A knowledgeable financial planner could also help you evaluate possible divorce settlements to determine what scenario is best for you.

If you need to get a handle on your family’s finances, we here do you start? If you haven’t been involved in managing the money, you may feel overwhelmed at the thought of digging through account statements and tax returns. The Divorce Money Guide is a simple tool to help you do just that. You can confidently navigate your divorce finances and set yourself up for success as you move into this new season of life.

Get excited for what’s ahead

While divorce at any age can be stressful, divorcing your spouse in your 50s and beyond can give you a unique opportunity to embrace YOUR goals, hobbies, and unrealized dreams. This is the time to set your sights on what you want out of the rest of your life.

• Build your friend and support network: You’ll probably have more time for yourself. This can feel daunting at the beginning of your divorce. You may have TOO much time on your hands. Now is the time to revive old friendships as well as meet new friends. Build on the special relationships in your life that help you grow.
• Rediscover old and new hobbies: Have you always wanted to take that cooking class, but you’ve never had the time? Have you been dreaming of that vacation for years? Now is the time to do things for yourself. Embracing hobbies with friends AND solo can be liberating.
  
  

Divorcing after 50 may like a big step backward, but with a plan, resources, and an idea of how to grow and expand your life, your divorce can be the starting point of the best part of your life.