If you’ve been married for decades, you and your partner’s lives are likely completely intertwined in terms of family connections, finances and emotions. Divorce is never easy, but untangling those bonds is even more complicated in a gray divorce.
However, there are ways to make the process smoother and help you prepare for this next chapter in your life.
Why have gray divorces increased?
The number of couples divorcing has decreased in the past few decades, except for the 50 and older population. It’s a phenomenon known as “gray divorce,” and there are a few reasons why it’s becoming more common:
- Americans are living longer and aging healthier: They realize their older years aren’t the beginning of the end. Instead, they are the beginning of a whole new chapter in their lives. They don’t want to spend their second act in an unsatisfactory marriage.
- Women work outside the home: It wasn’t long ago that women stayed home, caring for the household and children while the husband was the primary breadwinner. While there are still a lot of “traditional wives”, many women have their own careers and aren’t dependent on their spouse. This gives them the financial independence to go their own way.
- Society: Divorce no longer has the stigma of being “taboo”, freeing many people from societal expectations.
One of the most complex areas of a gray divorce is finances. When a couple reaches their 50s or 60s, they have many shared financial commitments, including investments, retirement accounts and real estate properties. Finding a way to split these assets equitably while preserving retirement financial security can be difficult.
Younger couples divorcing have the luxury of time to rebuild their savings. Older adults have a much shorter period to recover from a financial loss.
Not all of a couple’s assets are necessarily financial. There are also items of significant emotional value, such as a vacation home or a treasured family heirloom. The division of such things can become contentious.
For couples considering a gray divorce, financial planning must be a priority. It’s crucial to understand the implications of splitting assets and ensure all decisions are informed. While this may be a difficult time, with the right resources and mindset, it’s possible to move on to the next chapter of life, financially and emotionally prepared.
