What does “Grey Divorce” mean?
While the overall divorce rate in the U.S. has been on a steady decline, the percentage of “Grey Divorce” has increased over 50% in recent years. Grey Divorce is a term used for older couples, or generally those that have been married for a while and are approaching or are already of retirement age.
The issues facing couples who are older are far greater than issues facing couples who are younger. Why is that? There is less amount of time to save additional assets, you might be living on a fixed income, and you might realize that all of the years you were married, you hadn’t save quite enough. Perhaps one spouses had stayed home raising the family while the other spouse worked, and is now facing returning to the workforce for the first time in years, or has been “under-employed” for many years after the age of 50. There are also other issues to consider such as the alimony laws in your state regarding the length and time of support; social security, ability to obtain life insurance, and difficulty in dividing pensions and other retirement plans. The older you are when you divorce, the lower your chances of recovering from any mistakes you make during the final settlement. It is critical for anyone over the age of 50 to concentrate on the long term financial implications of various proposals, as these will have to live with these results for the rest of your life.
If you are part of a grey divorce you must answer 5 simple divorce financial planning questions along the way towards your financial settlement:
- Do I have all the information to make good financial decisions?
- Can I maintain my standard of living for the rest of my life?
- If not, what has to change?
- Can I live with it?
- How can I take control of my financial future now that I am suddenly single?
Contact Collaborative Divorce Strategies to get a complimentary consultation on your personal situation: email@example.com