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How a gray divorce affects your financial outlook

On Behalf of | Feb 6, 2023 | Divorce |

For many California couples divorcing after age 50 can be a stunning life change. Separation is often contentious and complex if spouses have been married for years and share common assets. Gray divorce numbers are expected to triple the amount of the previous thirty years. The longer couples are married, the higher the divorce rate occurs.

Many factors contribute to divorce over 50, such as loss of affection, communication, job loss and mental health issues. Couples grow apart when people change. The 21st century presents opportunities for women to gain independence. People live longer and depend less on each other to take them through life, except when it comes to financial support.

Where does the money reside?

In traditional marriages, the husband controls the finances, and the wife’s name might only be on the mortgage but not on any bank account or financial assets. The wife might only be a partial beneficiary, if at all. A careful review of all assets is a smart way to know what is at stake in a divorce. Assets can be moved, especially if there is no power of attorney or agreement to prevent it.

Debt, dissolution and divorce

Many older couples remain married because the challenges of separating assets and liabilities become too complicated and might cost more for each spouse to separate than to stay married.

High credit card debt, medical bills, and second mortgages face older couples and with retirement years approaching, the financial aspects become a significant concern.

The gray divorce costs

Separating assets is not just for the super-wealthy. Each year working-class people find themselves faced with wanting to end their marriage. The cost factors are essential, but there’s no price on happiness, health and peace of mind.