People sometimes believe that couples who have been together for many years and are older have solid marriages that won’t be shaken. In reality, the incidence of divorces in people over 50 years old is more common than what many realize. These divorces are known as grey divorces.
When a marriage ends in this stage of life, there are special considerations that must be factored into every decision that’s made. This process tends to be particularly consequential because divorce is happening later in life and there’s not as much time to recover from the effects of it.
Property division challenges
Property division in these cases often includes a variety of high-value assets. This can include a marital home and financial accounts. There may also be debts that have to be split. Some people going through a grey divorce may opt to sell assets to pay off debts, so they aren’t saddled with them while they’re newly single.
One of the most significant assets that a couple has to divide is retirement accounts. These accounts were likely built with the assumption that they’d be used to care for the expenses of one household. With the divorce, they will be split and have to be used to care for two households.
Supporting two households on funds originally meant for one is a critical consideration. When a couple separates, expenses often double—two mortgages or rents, utilities and daily living costs add up quickly. This financial strain can force one or both parties to reconsider their retirement plans.
Re-entering the workforce
Some people may need to continue working or get back into the workforce to make ends meet after a grey divorce. This can be a challenging undertaking, particularly for someone who hasn’t been working for some time. It may also be necessary to prepare a budget, downsize and cut back on expenses to enjoy relative financial peace.
It’s often beneficial to work with a legal representative who can assist with everything from negotiating the settlement to ensuring that documents, such as the qualified domestic relations order, to divide retirement accounts. Grey divorce isn’t an easy process. But, with proper guidance and support, it is usually a manageable one.
