For the past 20 years, there has been an increase in the number of Grey Divorces. It is when couples aged over 50, who are also called silver or diamond splitters, end their long-term marriages.
Possible Reasons for Getting a Divorce
Regardless of age, some of the common reasons for couples to file divorce papers are infidelity and irreconcilable differences. For couples who have been married for a long time but decided to separate later on in life, it is said to be also triggered by things like losing their spark or financial matters.
Couples who have been with each other for a long time, especially those whose children have already moved out, may lose the spark they had when they were just a few years into their marriage. Since the stigma surrounding divorce has been disappearing in this day and age, they may think that divorce is their best option.
Financial-related reasons can also affect their marriage. This happens when a spouse has been struggling with debt and financial management, has been spending more than what they can afford, or is the only one earning and controlling financial decisions in the household.
Experts say that there are more financial risks for stay-at-home spouses, which are typically women.
They may have given up or taken a step back from their careers to focus on family life, so having to deal with a new financial situation can be disorienting for most. Since they don’t work, they may not have retirement savings or a strong foundation for a new financial plan—especially if they do not handle their family’s finances.
Spouses need to get a good grasp of their financial situation and prepare themselves to be more financially independent.
Mind Your Budget
Divorce can affect the finances of both parties; may it be through the short-term impact of legal fees or the long-term impact of starting over again and establishing two separate households. Even if you are the breadwinner, the new set-up can take a toll on you financially.
Financial experts recommend keeping your new budget realistic and starting small. It is also important to set up savings and emergency funds. When it comes to investments, putting your money on riskier assets just to catch up on your previous standard of living should not be an option.
Since Grey Divorcees only have a short time before retirement, there is no room for risks. Setting aside a budget for therapy can also help you cope psychologically—but only if you can afford it.
Get Into the Workforce
If you have been on a hiatus from your career for a long time during your marriage, it is recommended to re-enter the workforce to avoid financial ruin. If you’re still not confident enough, take on any job or routine just to give you a grasp on the new dynamics.
But, make sure to be realistic when it comes to job skills and salary. Another motivation for getting into the workforce is the health insurance benefit from the employer.