Divorce has financial consequences at any age, but divorcing later in life can be especially challenging. When retirement is near, or already underway, there may be less time to rebuild savings, recover from legal expenses, or adjust to a reduced household income.
Why Later-Life Divorce Is Different
After divorce, each spouse typically has fewer assets than before, and legal fees may create additional debt. Younger individuals often have more working years ahead to rebuild financially. Older adults, however, may be approaching retirement or already living on a fixed income, such as Social Security, a pension, or retirement savings.
In some cases, a later-life divorce may mean continuing to work longer than expected, delaying retirement, or making significant changes to day-to-day spending.
The Rise of “Gray Divorce”
According to a 2022 study from Bowling Green State University in Ohio, overall divorce rates have declined since 1990. However, divorce among older adults has increased significantly:
- For people over 50, divorce rates have doubled.
- For people over 65, divorce rates have tripled.
- Women who divorce after age 50 experience, on average, a 45% decline in their standard of living.
Preparing for a Different Retirement
One of the most important parts of divorcing later in life is accepting that retirement may look different than originally planned. Flexibility is key. Adjustments may be necessary in housing, spending, work plans, savings goals, and overall lifestyle expectations.
Speak With a Financial Planner Early
Because the financial impact can be long-lasting, it is crucial to consult with a financial planner before and during the divorce process. A financial planner can help you evaluate your expected income, expenses, retirement needs, and the best way to use any equitable distribution you receive.
A financial planner can also help you determine whether your proposed settlement supports your long-term financial stability, not just your immediate needs during the divorce.
Understand Your Social Security Options
You should obtain an estimate from Social Security so you understand how much you may receive. You should also determine whether it is more beneficial to claim Social Security based on your own earnings record or, if eligible, based on your spouse’s record. Understanding these options before finalizing a divorce can help you make more informed decisions about your future income.
Consider the Future of Alimony
If you expect to receive alimony, it is important to consider that your former spouse may seek to terminate or reduce alimony when they retire, whether at age 65 or later. This means alimony may not be a permanent source of income, and you should plan for the possibility that it could end after your ex-spouse’s retirement.
Divorcing later in life requires careful financial planning, realistic expectations, and a willingness to adjust. By working with a financial planner, understanding Social Security benefits, evaluating the future of alimony, and using equitable distribution strategically, you can better prepare for the next chapter of your life.
If you have more questions regarding a Marital and Family Law matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and arrange an initial consultation. You may also visit my website at: https://www.annmariegildenlaw.com
This article is for informational purposes only and does not form an attorney client privilege.