With a rise in gray divorce rates, more couples are realizing that they can prioritize happiness even in their later years. Many find that major life changes such as an empty nest or retirement trigger an awareness that the marriage is no longer what they thought it was.
When you consider a divorce in your later years, there are a few key financial considerations.
Alimony considerations
While alimony considerations are common in any divorce, gray divorce brings unique factors. For example, younger couples may find that the stay-at-home parent has lost a few years in the workforce but can return fairly easily, so short-term alimony covers their needs. With gray divorce, a stay-at-home spouse has often been out of the workforce for decades and may have concerns with health issues that prohibit a return. The primary income earner might pay spousal support for many years to come in these cases.
Retirement planning challenges
When you decide on divorce before retiring, you should assess your retirement funds and goals carefully in the process. Remember that you only get your share of retirement assets, so make sure you have the time necessary to fulfill your full retirement savings needs. Gray divorce often means fewer years left to retirement, which might require aggressive retirement savings efforts.
Understanding some of the financial considerations of gray divorce can help you prepare before you file. Take careful stock of your financial position and any opportunities you may have as you decide whether divorce is the right option for your relationship.
