Shining a light on Gray Divorce
If you don't know what a "gray divorce" is you are not alone. It's a term describing a divorce for a couple over 50 years of age. Statistics are showing that these types of divorce are increasing.
Gray or silver divorce comes with an added set of complications to an already stressful experience.
Here are three financial concerns for couples over 50 going through a divorce:
Retirement planning
Once we are in our 50's and over, most people start to consider what retirement will look like for them. Splitting the household in a divorce means two sets of bills, dividing assets such as 401k's and figuring out how to handle the marital home. This may mean working longer for some people to recover from the financial implications of divorcing later in life.
Dividing substantial assets
Divorcing later in life likely means we've had time to accumulate more assets. This of course is a positive thing but adds to the stress and complexity of a divorce. Retirement plans such as 401k's can be one of your largest assets once who've reached mid-life. A QDRO or qualified domestic relation order must be used to divide this type of investment account. A qualified professional such as an attorney or divorce financial professional can help with this process.
Tax implications
Taxes may be the last thing on your mind when divorcing. This is understable but does need to be a consideration for a few reasons. Mainly when dividing your family's assets. Certain types of investment accounts are taxed in different ways. This can create an unequitable situation now or years in the future without even realizing it.
