Getting a divorce is never easy since it represents so many changes for the entire family. Even if your kids are grown and child custody isn’t a part of your divorce, the financial implications of getting divorce when you’re older are serious. You’ll need to be prepare to potentially adapt your estate or retirement plan as a result.
Recent studies have shown that there has been a surge in gray divorce. In the last 25 years, for example, the rate of divorce for adults age 50 and beyond increased by over 100%. While there are multiple different reasons impacting gray divorce, one fact remains the same: it can be costly for your overall financial picture and for your retirement strategy to make a change this late in life.
Women are earning more, as children move away couples alter their purpose, many people are increasingly choosing happiness and lifestyle instead of financial security, and society has become more accepting of divorce. All of these reasons contribute to a higher likelihood to get divorced, but the financially devastating impacts can be significant.
The onetime expense of a divorce can cost over $15,000 but the per person cost of living on your own is up to 50% higher than it is for couples. It can also take years to recover from the impact of a divorce and couples in their later years have fewer opportunities to recoup their financial losses. The financial impacts for women are especially significant since their household income drops by as much as 40%.
Men typically earn more and have better employment options but women may also live longer, meaning that their financial outlook and perspective becomes even more important. As it relates to getting divorced in your older years, you’ll want to schedule a consultation with an estate planning lawyer in Pasadena, CA to discuss how your existing strategies may need to be adapted.