Navigating Financial Challenges in Grey Divorce: Tips for the Over 50s
The phenomenon of “grey divorce” – couples splitting up in their 50s and beyond – has doubled since the 1990s. While ending a marriage is never easy, divorcing later in life presents unique financial challenges that can significantly impact retirement plans and long-term financial security. Here’s how to navigate these choppy waters with confidence.
Understanding the Unique Challenges
When couples divorce later in life, they face distinct financial hurdles. With fewer working years ahead, there’s limited time to recover from the financial impact of splitting assets and income. Additionally, healthcare costs become a more pressing concern, and Social Security benefits require careful consideration.
Essential Financial Steps to Take
1. Get a Clear Picture of Your Assets
Begin by creating a comprehensive inventory of all marital assets, including:
- Retirement accounts and pensions
- Real estate holdings
- Investment portfolios
- Insurance policies
- Social Security benefits
- Valuable collectibles or possessions
2. Protect Your Retirement
Consider these strategies to safeguard your retirement:
- Reassess your retirement timeline
- Explore catching up on retirement contributions
- Review and adjust investment strategies
- Consider working longer if necessary
- Evaluate whether keeping the family home is financially viable
Resources
United States Resources:
Canadian Resources:
Citations:
- Brown, S. L., & Lin, I. F. (2012). The Gray Divorce Revolution. Journals of Gerontology: Social Sciences, 67B(6), 870-876.
- Stepler, R. (2017). Led by Baby Boomers, divorce rates climb for America’s 50+ population. Pew Research Center.