With divorce among people over age 50 continuing to rise, some older couples in Florida might be faced with having to experience a “gray divorce.” Beyond the usual complications brought about by divorce, older couples might face some additional challenges that are often financial in nature.
Retirement plans can be significantly impacted
With retirement much closer than for younger couples, a major challenge that older couples face when they decide to split up is how to continue with their retirement plans. This might involve having to divide retirement accounts and figure out how to continue living within the standard they are accustomed to. This might not be possible for both or either since living apart is usually much more expensive than living together. It can even affect older couples who are still working and receiving an income. When preparing for retirement after divorce, it is important to consider a variety of factors, including:
- Social Security benefits
- Health coverage
- Division of retirement accounts
- Long-term care options and costs
More assets can bring more complications
While divorced seniors experience poverty at a higher rate than married or widowed seniors, some older couples accrue a large portfolio of assets over the life of their marriage. Negotiating how to divide these assets can result in both spouses fighting over the properties in a long and expensive contested divorce. However, if the spouses are able to negotiate and come to a more amicable agreement that is fair for both, the process might be faster and less complicated.
Preparation and careful planning for the future are important to ensure that you can maintain a healthy financial life after divorce. Even before filing for divorce, you should collect copies of all financial documents, including account statements, property titles and beneficiary information to go over with your lawyer before property division negotiations begin.