The term “gray divorce” has been trending for the last few years. It is a popular term, and not a legal one. It relates to couples who have been in long term marriages and who discover in their later years that they just don’t want to be married to their spouse any longer. These divorces have been on the rise in my practice since coming out of the pandemic. Clients have shared that sitting in isolation for those many months allowed them to consider changes in their lives and what that would look like for themselves, their soon to be ex-spouse, and perhaps their adult children who have since left the nest.
Gray divorces are not to be taken lightly. There are serious financial issues to consider when contemplating divorce in your 50’s and later. Many of my clients have done well saving for retirement and strategic tax planning and gifting throughout their marriage. In any divorce, gray or not, the collective bucket of money is divided and what was one set of household expenses is soon doubled.
Divorcing later in life carries its own unique considerations. Typically, retirement savings are divided in half, the marital residence which might finally be paid off is likely to be sold, and the tax planning benefits you may have had as spouses go away. Current interest rates continue to be high; so even if you aren’t selling the house, one of you will still need a place to live. For example, are you the one buying a new home and incurring a 15 or 30 year mortgage with an interest rate above 6% at age 55?
As in any divorce, it is important to know your rights, and understand the financial and emotional impacts it may have before you decide which way to go at the fork in the road.
– Christine Costantino
