Trends show an increase in the number of divorces for couples 50-plus years of age. Known as gray divorce, these individuals face some unique challenges that younger divorcing spouses may not.
One of the greatest challenges is the economic impact that gray divorce can have on a family. Learn why dividing assets at an older age may be more difficult.
Upsetting retirement plans
Married couples plan for retirement under the assumption that they will age together. When they divorce, they must face the reality of dividing retirement accounts and pensions. Regardless of which spouse earned the income, the accounts will be divided.
Depending upon your family’s situation, this may not be enough to comfortably retire in the same time-frame as before. Spouses may be required to work for extra years, create a new budget or enter the workforce after years of staying at home with the kids.
The difficulty of re–entering the workforce
Some stay-at-home spouses may have been out of the workforce for 20-plus years. It can be difficult to find a job that you have adequate experience in, or to convince an employer to take on an older employee. Some spouses may even require additional education or training before they can re-enter the workforce. However, all these factors are taken into account when Pennsylvania determines alimony payments.
Determining a new budget
As you start planning for your new life, sit down and create a budget. Assets will be divided between you and your spouse, and basic household expenses will no longer be split between two people. This combination can greatly reduce your expendable cash each month.
You may want to consider meeting with a financial planner. While the economic realities after divorce may seem frightening, there are ways to strategically plan for a secure financial future. A professional financial planner can help you create a smart budget, investment strategy and save for retirement.