While divorce rates in the US are declining, people over the age of 50 are divorcing at double the rate they were in 1990. As some married couples age, the factors that keep them together, such as children, hobbies/interests, and financial reliance, are significantly reduced. Divorce at any age can be devastating, but a grey divorce involves special considerations you should be aware of, particularly if you’re a Texas resident.
Factors to keep in mind
Your cost of living will likely be affected if you decide to end your marriage. Your retirement funds could be impacted since you may be obligated to share half or part of your retirement funds with your ex-spouse. The closer you get to retirement, the less time you have to make up for lost income or recover funds that were impacted by the stock market.
The impact of a late-in-life divorce is more evident for women. Once a woman gets a divorce, her household income will be drastically reduced. The US Census Bureau indicates that 20% of women enter into poverty after divorce. Since women are expected to live around 80 years and men’s life expectancy is around 75, women can find themselves living a considerable amount of time with limited funds.
The best steps to take in divorce
A grey divorce can have a significant impact on your retirement plans. You’ll have to pay legal fees and you may have to pay for a therapist to help you and your ex through the divorce. You may also be obligated to pay off debts that you previously took care of with your spouse.
You can reduce some of the negative financial impact of divorce by taking an inventory of your assets so you’ll know which assets are shared and which belong solely to you or your spouse. You should also know what you owe so you can make a plan to settle your debt as soon as possible.