Challenges associated with gray divorce
A divorce at a later stage in life can present many unique financial challenges to people compared to a divorce at a younger age.
Any New York resident who has been divorced knows that it can be an extremely difficult experience. Every part of a person’s life is affected by a divorce but when this happens to people in their 50s, 60s and beyond, the implications can be unique.
How does a gray divorce effect finances?
The Washington Post reports that one of the potential downfalls of a late-stage divorce is the delaying of retirement. If one spouse is ordered to pay alimony to the other, that money has to come from somewhere. For most people, alimony funds come from earned income. That earned income often comes from employment if investment income is not available. If alimony must be paid for an extended period of time or even life, that may put retirement at 65 or even 70 at risk.
Health insurance coverage is another issue for people divorcing at late stages in life. For most couples who do not yet qualify for Medicare, health insurance is provided by one person’s employer. After a divorce, the other spouse has to find a way to pay for this coverage and this may be a costly item, especially if not provided through employment.
Is it wise to get the house?
When it comes time to divide a marital estate in a gray divorce, people should take caution before choosing to keep the house . According to U.S. News and World Report, getting the house means giving up some potentially more valuable assets. Even if the current market value of a home equals other assets, the ongoing cost of maintaining a home can quickly eat into that value. All of a sudden, the benefit of the home gets reduced.
What makes people get divorced later in life?
Many factors can lead to a divorce but the New York Times explains it is more common today for spouses to want more than just “acceptable” when it comes to a life partner.
Forbes adds that more women today are able to afford living on their own, thereby making divorce more possible for them than it may have been in the past.
What should people do when facing a divorce after 50?
New York residents should always consult with an attorney before getting divorced. The potential implications of a gray divorce are great and require proper care and attention in order to protect a person’s lifestyle.