G is for Gray Divorce

G is for Gray Divorce

Getting a Gray Divorce

A Gray Divorce is a term often used for those separating after age 50. While a divorce can be difficult at any age, one after age 50 poses unique challenges. Couples at this age tend to have bigger assets and more complicated taxes. With less time to rebuild their lives, a divorce could have a greater impact on their financial and mental futures.

For many women, a gray divorce can be financially dangerous. Unfortunately, many women who fall into this category are also of the generation where the man was the sole breadwinner of the family. It can feel next to impossible to enter the workforce as a senior. The household income tends to drop to up to 40% within the first year after a divorce. This financial disparity is much more pronounced in older women than in younger women.

The financial pitfalls of divorce are usually greater for women than they are for men. Here are a few tips to protect yourself from a gray divorce.

Have access to your own money.

Whether you have never worked a day in your life or have extensive savings from your working days, it is important always to have access to your own money. This is important so you cannot get cut off if your relationship goes south.

Consider a pre-or post-nuptial agreement

This can feel odd when you are falling in love and getting married, but it is smart to set some financial ground rules before blending your life with someone else. Oftentimes, women will take more financial risks within a marriage, such as taking a break or quitting work to become a caregiver. It is important to protect yourself in case your lives change.

Social Security can help

Social Security can be an important source of income once you are retried. Many women can claim their ex-spouse’s benefit after a divorce. Make sure to be savvy about how Social Security can work in your favor.

Save your money

It goes without saying, but saving for a rainy day never hurts anyone! Whether you are saving your own earnings or need to rely on alimony payments, saving money can help build your financial future.

A divorce is never the end of the world. However, as we move through life, divorces can pose new and different challenges. Be smart about taking control of your finances, and don’t hesitate to contact your financial advisor for help with your gray divorce.

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