Gray divorce, which is a term that generally refers to divorce among older couples who have been together for many years, can inspire unique financial challenges, especially for women. Recovering financially from a gray divorce requires strategic planning and a proactive approach.
In order to plan effectively for the financial consequences of gray divorce, women need to be fully aware of their financial situation, including the assets and liabilities that make up their marital estate. This is because recovering from the financial fallout of a gray divorce starts during the property division process — not after the broader divorce process is completed.
Thinking ahead and staying focused accordingly
Post-divorce, women often find themselves managing finances independently, sometimes for the first time in years. Creating a realistic budget that accounts for income, expenses and future needs can help to set the foundation for wise money management moving forward.
It’s also important to keep the future in mind when approaching the property division process. It can be easy to make emotional decisions when dividing assets and liabilities. However, by carefully considering how various actions – and inactions – could impact one’s finances moving forward, it may be easier to recover from losing roughly half of one’s marital assets.
Finally, as gray divorce can significantly impact retirement plans, women may also need to revise their retirement strategy, considering factors like reduced retirement savings and the absence of a spouse’s Social Security or pension benefits. It’s important to prioritize retirement planning and consider ways to supplement savings, such as working longer or adjusting investment strategies.
Recovering financially from a gray divorce requires careful planning, a clear understanding of one’s financial situation and a willingness to seek guidance when necessary. Divorcing after 50 can be an intimidating process, as well as a stressful one. Thankfully, by embracing thoughtful, proactive approaches, it is possible to recover financially after weathering this trying transition.