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Gray Divorce

January 23, 2019

When people hear the word divorce, many think of younger couples with children. However, gray divorce, couples 50 and over, is increasing rapidly. In fact, the divorce rate among those over 50 has doubled in the past 25 years.

According to the National Center for Health Statistics, the divorce rate for those over 65 has tripled in the last 25 years!

The financial risk to women in gray divorces is substantial. According to the Research on Aging, single and divorced women of Social Security age are more likely to face economic insecurity. Their Social Security benefits are relatively low compared to a married couple. Their poverty rates are over 25%.

If you are planning a divorce, besides your legal advisors, a good financial planner and tax advisor should be part of the team. You had one house with a certain income and expenses. You are now splitting into two households. Depending on the size of the estate, it may not be possible to maintain the style of living you are accustomed to. Retirement plans, annuities, pensions, investments, debt are all subject to the marital settlement. However, they may be taxed differently. It is important to understand the tax consequences.

 

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