Instances of divorce after 50 are increasing in the United States. AARP reports that the divorce rate for older couples doubled in the past 27 years, particularly for people in the mid-50s to early 60s.
While there are many facets to gray divorce, you may find the risk of lost assets the most challenging. Understanding these potential losses may help you protect your future finances once the divorce is final.
Reduced retirement funds
As you approach retirement age and face a divorce, the split may cause you to lose half of the savings you gathered for your golden years, including any 401K or other retirement accounts. This may have a negative impact on your future, especially if you do not have any other savings in place. As a result, you might find yourself living on an extremely tight budget after your divorce.
Loss of your home
Depending on the terms of the divorce, you may get to keep the home you shared with your ex-spouse. However, this is something to consider carefully, especially if you lose other assets in the course of the divorce, because in the end, you may not have the funds to maintain your home or pay property taxes. If you plan to fight for possession of your home, it is wise that you double-check future funding to ensure you can afford to keep it.
You may want to review a complete list of you and your spouse’s shared assets as divorce proceedings begin. If you suspect him or her of hiding or transferring ownerships of vehicles or accounts to other people, you can alert the court or your accountant.