A gray divorce is one that happens later in life. While there usually aren’t still minor children to make plans for, other facets of divorce can be complicated. Understanding what you may need to think about can help you to ensure that you’re taking the right steps.
One of the primary considerations, when you’re thinking about a gray divorce, is that you’ll have to untangle the marital finances. This can become complex if you’ve been married for decades. Assets, including retirement accounts, will have to be split. This is a bit easier if you each have your own retirement account that’s valued at around the same amount.
Retirement considerations abound
When couples save for retirement, they consider the cost of living in the same home using joint retirement accounts if both people are working and have accounts. If you go through a gray divorce, those accounts that were meant to support one home will now have to be split to support two homes.
The dramatic cut in finances can mean major lifestyle changes once you have your own place after the end of the marriage. Some people who are in this situation find they have to push off retirement so they can work longer. Cutting expenses and getting a part-time job to have extra income is how some people make ends meet if they’re in the midst of a gray divorce.
Regardless of how long they’ve been married, anyone going through a divorce should learn everything about their legal options. Property division and other factors can have a direct impact on your future.