Financial Planning in a Grey Divorce: Protecting Your Future After 50
The phenomenon of “grey divorce” – couples splitting after age 50 – has doubled since 1990, bringing unique financial challenges for those facing retirement alone. While ending a long-term marriage is emotionally complex, the financial implications can be equally daunting. Here’s how to protect your financial future when divorcing later in life.
Understanding the Unique Challenges
Grey divorce often involves more complicated financial considerations than younger divorces. Couples have typically accumulated substantial assets, including retirement accounts, property, and investments. They also have less time to recover financially, making smart planning crucial.
Key Areas to Address
1. Retirement Savings
- Evaluate all retirement accounts, including 401(k)s and IRAs
- Consider how pension benefits will be divided
- Understand Social Security benefits, especially if married for 10+ years
2. Healthcare Planning
- Review health insurance options post-divorce
- Consider long-term care insurance
- Account for future medical expenses in financial planning
3. Housing Decisions
- Assess whether keeping the family home is financially viable
- Consider downsizing to reduce expenses
- Evaluate tax implications of property decisions