Divorce could happen to Virginia couples at any time in the marriage, including after many years have gone by. Spouses over the age of 50 may find their union coming apart and feel that a split might be the best option. However, the dissolution might come with unique challenges for those dealing with a “gray divorce” with financial considerations weighing on them most heavily.
New financial challenges for the recently single
Married couples that relied on the other spouse’s income or their combined incomes during the marriage are likely to discover that surviving on only one income is difficult and requires an adjustment of lifestyle and priorities.
Monthly rent and related living costs are often more expensive than realized. In addition, retirement savings are not likely to be immediately available, social security may be years away, having adequate health insurance, and finding sufficient employment at an older age may prove complicated.
Dealing with the terms of a divorce
A common mistake many spouses make is wanting to keep the marital home. However, fighting to keep a house that has significant equity may be unaffordable after having to buy out the other spouse, paying for maintenance and deferred renovations, as well as increasing real estate taxes. Selling the property could be wiser, even if it means letting go.
Individual retirement accounts, 401(k) plans, and other assets will also factor into negotiations with retirement planning during the marriage to provide for a couple’s mutual support post-retirement now being divided before retirement leaving both spouses with less than planned for.
Financial matters related to a gray divorce often requires consideration of more issues than many realize. Speaking with an attorney about specific concerns is suggested. In addition, working with a divorce financial planner is also something that should be considered.