Navigating Late-Life Divorce: Financial and Emotional Considerations

A Growing Trend

1990: Only 8.7% of U.S. divorces involved adults over 50
2019: That number jumped to 36%

This phenomenon, known as "gray divorce," is driven by factors such as:

Growing apart over time
Empty nests
Increased togetherness in retirement

Financial Considerations

Average U.S. divorce cost: $8,000 to $11,000
Actual expense: Can be much higher depending on assets and complications

For those over 60, the decision to divorce or live separately involves weighing:

Emotional pros and cons
Financial pros and cons

The Impact of Divorce

Pros

Offers a clean break
Provides closure
Simplifies future financial planning

Cons

Can be costly and adversarial
May strain relationships
Can complicate retirement plans

With fewer working years ahead, the financial impact of divorce can be significant, affecting:

Housing
Healthcare
Insurance costs

Living Separately

Staying married but living separately can preserve certain benefits, such as:

Health insurance coverage
Social Security spousal benefits

However, this arrangement keeps couples financially and legally connected, which can have unintended consequences.

Practical Considerations

Before choosing to live separately, couples should consider:

Living arrangements
Home expenses
State-specific legal requirements

Clear communication and planning are essential to avoid complications down the road.

Planning for Divorce

For those committed to divorcing, careful planning is crucial. Understanding finances, exploring mediation, and consulting a financial advisor can help navigate the process more smoothly.

Ultimately, the decision should prioritize:

Peace of mind
The ability to move forward confidently