Detangling your life with your soon-to-be ex-spouse can cause frustration. If you are facing a divorce, you may worry about how you will split the assets you accumulated over a lifetime. Financial aspects of divorce can be especially complicated if you are nearing retirement.
Dividing lifetime savings
Gray divorce is a term used to signify the act of divorcing your spouse close to retirement age. According to US News, this is increasingly prevalent in today’s world. This can lead to increased long term stress and a significant drop in wealth for older people. Savings that you have been accumulating for years may be divided during your divorce. Unlike those who divorce young, you may not have enough time to recuperate the loss in the upcoming future.
Your career and earning potential also change as you age. For previous full-time caretakers of children, you may find it harder to maintain your normal standard of living after not having been a part of the workforce for years.
Even those in the workforce could struggle to stay at the same level of financial stability as before. Spousal support payments may add to this burden. Returning to a job after retirement can cause you to panic if you did not plan to divorce at this age.
However, dealing with a divorce may be easier without having to take care of young children. If you are an empty-nester who divorces, figuring out where to purchase health insurance and secure an income is the first step to dealing with your new situation. Gray divorce can be manageable if you take proper steps to secure your assets.