Divorce can come at any time in life. Some couples divorce in their 20s or 30s. Others divorce in their 50s. When a couple gets divorced after age 50, it is popularly called a gray divorce. In the past several years, the incidence of gray divorce has rocketed. As its rate climbs, many people are realizing that it can some with some serious financial pitfalls.
Divorce nearly always takes a major toll on a couple’s finances. This is true of divorce at every age, but gray divorce can be particularly damaging. It is important for anyone who is going through a gray divorce to be aware of the financial pitfalls and to prepare accordingly.
Money matters in a gray divorce
By the time they reach their 50s, most people have accumulated more assets than their younger counterparts. This means that there is much more to lose in a divorce. One major asset that must be addressed in a divorce is retirement accounts. Often, seniors who are divorcing do not realize just how much of a hit their retirement accounts could potentially take.
Gray divorce can often affect women more severely than their male partners. Many older couples follow traditional gender roles in which the husband manages the family finances on his wife’s behalf. When the couple parts, the former wife is expected to handle major financial decisions on her own.
Gray divorce and your finances
Dealing with divorce after age 50 is never easy. There are so many things to take into consideration: Family, career, children and property, to name just a few. It is crucial that anyone who is getting a gray divorce also carefully consider their finances. Smart financial management accompanied by outside legal assistance can be the difference between a full wallet and an empty one. Gray divorcés should address their finances so that they can enjoy the exciting new chapter in their lives.