ORLANDO, Fla. (Ivanhoe Newswire) — Divorce later in life, after decades of marriage, is becoming more and more common. Researchers say the rate has increased dramatically for people older than 50. In fact, one in ten people who divorce are at least 65 years old. And for couples at that age, a gray divorce can be financially devastating for both sides.
According to a study by Bowling Green State University, the number of divorces for people 50 and older has doubled since 1990. And for ages 65 and older rates have tripled.
“It’s very, very tough for couples that have been together for a long time like that to split up their assets,” said Kristin Castello, Financial Planner.
A gray divorce can be especially financially devastating for women. Studies suggest women’s income generally drops up to 40 percent in the year after a divorce, their standard of living declined 45 percent. While the drop for men was less severe at 21 percent. So, what can women do to protect themselves. First, get active in your household finances before filing for a divorce. Know where the money is going. Also, have access to your own money so your spouse can’t shut off financial support. And women should invest in their own retirement account.
“What we see most of the time is both of the parties have to start rebuilding their retirement assets,” said Castello.
Financial Planner Kristin Castello suggests people in this situation contribute any extra money they can to a retirement plan.
“If you’re over age 50, you can contribute an extra $7,500 to your 401k every year,” explained Castello.
If you were married 10 years or longer, you can claim Social Security benefits from an ex-spouse, but Social Security alone is usually not enough income per month to pay monthly expenses. Spouses who experience a gray divorce, on average, can count on less than $1,200 per month from Social Security.
Contributors to this news report include: Lindsay Dailey, Producer; Bob Walko, Editor
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Sources:
https://academic.oup.com/psychsocgerontology/article/76/10/2073/5903434?login=false
https://www.cnbc.com/2024/03/23/why-gray-divorce-is-a-significant-financial-risk-for-women.html
