The term “gray divorce” refers to people divorcing in their 50s or later. While it will be similar in many ways to an earlier divorce, there are some special considerations.
The following are general concerns based on the fact that, on average, you have fewer years left after your divorce to resolve financial shortages.
1. Funding your retirement
You share a lot of costs when married, which means that your costs could go up when you separate. For example, a whole electricity bill when you live alone will likely be more than half your current one. You may also lose savings when you divorce, as you will have to split your marital assets.
Funding your retirement may, therefore, be more difficult than before. Someone who divorces in their 30s or 40s has plenty more years to earn and rebuild for retirement.
2. Insuring your health
Many spouses are insured under the health insurance plan their spouse gets from work. If this applies to you, then you need to look at the alternatives. If you work, you may be able to get cover through your employer. Otherwise, you may need to take insurance out privately. Your age could make this prohibitively expensive, especially if you have a pre-existing condition.
3. Entitlement to Social Security benefits
Social security entitlement is another form of financial assistance where people can lose out in a divorce. If you have relied on your spouse’s contributions to get this, you need to understand how divorcing now will affect these. In some cases it is better to wait a while before ending the marriage to secure your entitlement.
Divorce is a complex matter, but there is legal help available to learn more.