If you’ve been in the workforce for some years, you’ve undoubtedly dreamed of your retirement. You’ve likely envisioned spending time with grandchildren, traveling and pursuing your favorite hobbies.
One thing you didn’t plan on is getting a divorce. However, gray divorces are becoming more common. This can throw a wrench in your retirement plans.
Why are there more gray divorces now than in the past?
Gray divorce refers to couples aged 50 and older who end their marriages after a decade or more. While divorce is trending downwards overall, the number of gray divorces has increased. Several factors contribute to this phenomenon, including the following:
- People living longer and healthier
- Greater financial independence
- Changing societal norms
Of course, everyone has their own unique reasons for getting divorced later in life.
Financial considerations in gray divorce
Illinois is an “equitable distribution” state. If a couple can’t work out a division of property, the court will determine what is a fair division. Couples who have spent decades building their financial nest egg face the challenging task of dividing retirement accounts, savings and property. This division can significantly reduce the resources that each partner has available, potentially delaying or altering retirement plans.
Another factor is the increase in living expenses that comes with living as a single person. Rather than splitting the cost of utilities and home maintenance between two incomes, each person is responsible for maintaining their own household — further straining retirement funds.
Gray divorces coincide with an age when individuals begin to experience health problems. If one spouse is covered by the other’s health insurance policy, they will have to get their own policy after divorce, which is an added expense.
While the financial aspects of a gray divorce can be daunting, there are steps you can take to mitigate the impact on your retirement. For example:
- Start making a budget to see how much your monthly expenses will be and determine where you can make cuts.
- Reassess your retirement goals and timelines to see if any adjustments need to be made, such as delaying retirement, adjusting your lifestyle or setting new priorities.
- Explore new income opportunities, such as part-time work or freelance opportunities.
Facing a gray divorce during your retirement years can be scary. Having experienced legal guidance can help you protect your rights and your financial future.
