A growing number of Americans over age 50 are rethinking long-term marriages — and not just emotionally, but financially. Recent data show that divorces among older adults now make up a much larger share of all splits than in past decades, a trend sometimes called “gray divorce.”
For people around age 61 who are unhappy in their marriage, the financial implications of divorce can feel daunting. While a legal divorce creates a clear break and division of assets, it can be costly and may disrupt retirement planning — especially when there are fewer earning years left.
XML Senior Wealth Advisor, Shawna Bieda, CFP®, CDFA® weighed in saying that staying legally married while living separately might offer certain financial advantages, such as continued access to health insurance through a spouse’s employer and preserving eligibility for Social Security spousal benefits. But this arrangement also keeps spouses financially tied to one another, which can carry risks like shared debt or tax liabilities.
Research shows gray divorce often has serious economic consequences. Many older adults experience substantial drops in wealth and standard of living post-divorce, with women frequently hit the hardest due to factors like lower lifetime earnings and less time to rebuild financially.
Ultimately, we suggest weighing the emotional and financial pros and cons of both divorce and separation, planning carefully with your XML wealth advisor, and clearly defining whether you choose to end your marriage or remain married but live apart. Read more at Kiplinger here.
Have questions about how these insights and ideas could impact your personalized wealth management strategy? Let’s talk.
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