One of the most unexpected trends in divorce is the increase in splits late in life. Known as ‘grey divorces,’ these break-ups represent yet another big change Boomers have brought to American life. In Pennsylvania, couples over 50 seeking divorce should know what to expect when they’re newly single. Divorce can have very serious financial consequences for older adults.
Can you maintain your lifestyle?
People who divorce over the age of 50 need to think about what will happen to their financial position. At that point in life, people are facing retirement or are perhaps already retired. Divorcing will mean losing part of what they’ve set aside for the future, at a time when their earnings are about to drop. Grey divorce may mean downsizing from a house to a condo or apartment earlier than planned.
If you’re considering a grey divorce, taking stock of what you have and what you owe is important. Write out what your assets are and understand that you’ll be losing half. Also, recall that divorce lawyers can be expensive. Be honest. This accounting may influence your choices about everything from what you buy at the grocery store, to what vacations you’re able to take. Getting good financial advice once you’ve started the divorce process is also important. One of the best things anyone going through a divorce can do is meet with a CDFA.
Certified Divorce Financial Analysts have specialized training. They may be able to help you find hidden assets. But more importantly, they often help people make a financial plan for their life after divorce. For many older people, divorcing at this point in their lives will mean cutting back and losing some ground financially. However, with careful planning, it may be possible to maintain or even gain ground in some cases.