A study in the U.S (reported in the Independent), has identified that 36% of adults getting divorced are aged 50 or older and that the only age group with an increasing divorce rate is adults aged 65 and older.
This raises questions about how ‘grey’ divorcees will manage financially in old age when they need to fund two homes and lifestyles instead of one.
The study says that typically, divorces at this age will negatively impact women more than men and that in heterosexual relationships, the economic effects are reportedly “less severe” for men. The survey found that middle-aged men may even experience an income bump after their divorce. Typically, women in younger generations are more likely to work well into middle age than their older counterparts.
Social norms perpetuated in past decades, like men being the sole breadwinners and providers, result in the economic disadvantages that “grey divorces” impose on women.
Instead of relying on their spouses to manage the finances, future generations of women are therefore encouraged to take a more active role in the family finances. In the event of a divorce, having a backup plan will leave them on a better financial footing. Pre-nuptial and post-nuptial agreements can be important tool in planning ahead.
Here are 5 practical steps to take for those facing or considering a “grey divorce” to ensure financial stability and well-being:
1. Assess Financial Situation:
- Inventory Assets and Liabilities
- Budget for Two Households
2. Legal and Financial Advice:
- Consult a Financial Planner
- Hire a Divorce Consultant and / or solicitor
- Evaluate Retirement Plans
- Consider Employment
3. Health Insurance and Care Planning:
- Health Insurance Coverage
- Long-Term Care Planning
4. Legal Documents and Estate Planning:
- Update Legal Documents
- Estate Planning
5. Emotional and Social Support:
- Seek Counselling
- Build a Support Network
- Take Charge of Finances
- Emergency Fund
We are a team of 5 experienced lawyers who are acting as divorce consultants, helping people navigate the legal maze and stop them making expensive mistakes.
If you would like more information regarding any of the above or you know someone who may benefit from speaking to us, please do contact me. We don’t charge for an initial consultation.