Understanding the Financial Impact of a Gray Divorce

Divorce can happen at all ages. Even individuals who have been married for several decades may discover they are no longer happy in their marriage. 

Today, people over age 50 are divorcing more and more often, and, as a result, the term “gray divorce” has been created to describe this. Those going through a gray divorce face unique issues compared to younger couples. Knowing what these are will help you stay prepared. 

Financial prep for a gray divorce

It is important for anyone going through a gray divorce to prepare for the split. A big issue in these divorces is retirement. If you depended on your shared retirement savings for these years, you now must split them. 

You must also separate bills, homes, assets and more. In some situations, couples decide to sell their house; in other situations, one spouse will remain there, and the other’s share is then bought out. It is best to consider the situation to determine what makes the most sense for you.

To best prep for your gray divorce, you need to make sure you have the following information available:

  • Copies of any deeds to real estate that is in your name or your spouse’s name
  • Copies of your tax returns for the past several years
  • Bank statements for the last several months
  • Information about any debts in your name or your spouse’s name
  • Information about any other assets, including stocks, bonds and other investments

Sorting through the financials is often the trickiest part of a gray divorce, but it gets much easier to handle when you have copies of all important paperwork on hand.

Your options in a gray divorce

Divorce at any point in your life can be complicated and expensive. However, if you are filing for a gray divorce, knowing the financial and legal aspects of the situation is a must.