Divorcing later in life, or gray divorce has become more common. In fact, for those between the ages of 55 and 64, the divorce rate is twice as much as it used to be. Divorce, no matter your age, is a painful, stressful event. When you divorce as an older person, you may have different concerns than you would have had as a younger couple.
AARP explains how your income could drop in half after a divorce. Divorce can affect your retirement and social security negatively.
Retirement savings
Most people do not plan for divorce later in life. Odds are, through your marriage, the two of you saved money for your nest egg. You did not know that you would have to split it. Not only do you lose half of your income, but you lose half of your retirement savings. According to the U.S. Government Accountability Office, almost half of all households where the head is 55 years or older, do not have retirement savings at all.
Social Security
If you rely on your spouse’s Social Security, you may worry about what will happen to it after your divorce. This is particularly difficult for those who have little to no work history. If you were a family with one income, gray divorce can cause a lot of worries. If you and your spouse remained married for at least 10 years, then you can still receive Social Security benefits from your spouse. This is true even if your spouse remarries. During your divorce proceedings, look at which benefits you still have an entitlement to.
