Solo After 50: Navigating a “Gray Divorce”

Bill and Melinda Gates weren’t a typical couple. But they are part of an increasingly common trend: divorce among people over the age of 50.

“Gray divorces” among older and (usually) long-married couples have been on the rise for some time. While the divorce rate is falling among younger Americans, the rate for those age 50 and older has doubled since the 1990s.

The upshot: There’s a decent chance that many people age 50 or older will experience a gray divorce themselves, or have friends or family members who go through one. So it can be helpful to recognize some of the key issues that older couples getting divorced are likely to face.

For starters, consider the potentially massive financial impact of a divorce in middle age or beyond:

· People who get separated after age 50 can reasonably expect their wealth to plummet by an astounding 77 percent.

· After a gray divorce, women experienced a 45 percent drop in their standard of living (based on income-to-needs ratio) and men experienced a 21 percent reduction.

To mitigate some of that damage, it’s important for 50-plus divorcing couples to recognize the specific financial (and other) challenges they’ll face and try to tackle them head-on. Some of the key issues to consider:

Click here to continue reading.

Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.