Divorce for Seniors – A gray divorce can impact women more substantially than men.
The statistics confirm that divorce is actually on the rise for people over the age of 50. This can have a different financial impact upon the parties and particularly upon women.
First, younger couples who divorce have longer to regain their financial footing. While they are splitting all assets and retirement plans in half, they have many years to work upon building their assets back up. Divorce after the age of 60 leaves very little time to recover financially.
Women more often than men, have taken time off during their careers to be stay-at-home moms. While this was a good emotional decision at the time, it means that their incomes lag behind that of their husbands. It also means that their retirement savings are lower.
Since women statistically live longer, it means that they are retired longer. In other words, their retirements cost more. Yet, they have typically saved less for retirement than their husbands. Post-divorce income for a woman may be lower than her ex-husband. It may be more difficult to save the amounts that are necessary to have the retirement that she was looking forward to.
A gray divorce may require the woman to watch her spending more carefully and to live more frugally than her ex-spouse. She must have a budget that realistically plans for living within her means and increasing her savings.
Women who divorce later in life may have to adjust expectations of what a retirement will look like. While married, she may have looked forward to travel, rest and relaxation. On a single income, much of this may be curtailed.