Divorce is never easy, but couples who split after the age of 50 must deal with various challenges they would not have faced at a younger age.
The spotlight is on a secure financial future and how best to manage the divorce in order to meet that goal.
Someone going through what is sometimes called a “gray divorce” does not have as much time for financial recovery as a younger person. For example, a man who divorces in his thirties likely still has a career and can plan for retirement. An older retiree who divorces faces equitable distribution in the state of Pennsylvania, which includes his retirement income. An older woman who has depended on her spouse to take care of the family finances must quickly educate herself about the financial picture. She needs to know what she will have to live on once the divorce is final. Neither has the time at this point in life to go back to school to earn a degree or build another career.
A practical plan
Losing half the marital assets in a divorce means that the standard of living will probably be considerably different in a post-divorce world. Both parties may have to downsize, make do with less and learn to live on a budget that would not have bothered either of them in their younger years when they had to earn power and more overall flexibility.
A complex divorce
The longer two people have been married the more assets they have and the more complex the property division aspect of their divorce. They must think about liquid versus illiquid assets, investment issues and tax implications. However, with sound preparation and legal guidance they can anticipate enjoying financial security in the next stage of their lives.