No divorce is simple. A legal separation requires both partners to take stock of everything in their life as they chart a course for the future. In recent years, more Americans over the age of 50 have been filing for divorce.
For those going through “gray divorce,” as it is often called, there are added financial matters to consider.
You may have high-value assets
Couples in their early 30s have had little time to build their net worth. People in their 50s and beyond, on the other hand, often own more – and those assets can be very valuable.
This can lead to a more complex divorce proceeding, as both parties during property division have to account for items such as:
- An expensive home
- Additional real estate
- A business or business interests
- Retirement accounts
- High-value collections or items
Reaching a resolution will take some extra patience and thoroughness, and maybe even a bit of creativity.
Less time to rebuild
Even with a higher net worth, individuals over 50 who go through a divorce often face a difficult financial situation afterward. According to Bloomberg, one study found older divorcees took a significant hit to their standard of living after the separation. For women, the standard of living fell an average of 45 percent, while the decline for men was about 21 percent. Both rates are much higher than those faced by younger men and women.
In addition, recovering from this disruption is difficult. Those who divorce late have much less time to repair the financial damage that can come with divorce.
All of this highlights the importance of ensuring the process is fair to both partners. Divorce is hard, but it should not unfairly punish those involved.