September 21, 2018

Does gray divorce hurt your finances?

As an older couple in Michigan that has decided to split, you’ll soon be facing the trials and tribulations of gray divorce. The difference isn’t just in the name, though. You will likely be facing hurdles that your younger counterparts won’t have to worry about simply because of the age you’re at.

For example, LA Times shows that women in particular have a big adjustment to make. Over 50 percent of women who are 50 years or older have left the big financial decisions to their spouses. This applies to anyone who isn’t used to making financial choices, though. If you aren’t accustomed to dealing with investments, savings plans, retirement funds, or other big money-related issues, then this will be totally new territory for you.

Unfortunately, as an older couple, you also have less time to learn, adjust, and bounce back from any of the monetary losses that you might take on during the divorce. For example, a divorcing couple in their mid-twenties still has a lot of time ahead of them to bulk their savings back up again, even if their divorce is costly. Likewise, their retirement funds won’t be very big this early into their careers. An older couple, on the other hand, will have much larger retirement funds to lose and less time to build savings back up.

This is especially true if you’re already retired. Living on a fixed income can make issues like splitting property or handling alimony even more complex. Even determining an alimony paymnt can be complicated, since it involves additional components outside of the base pay like bonuses and savings plans.

If you still find that divorce is the most attractive option to you, consider seeking the aid of an experienced attorney. They can help make the transition as easy as possible.