Gray divorcees should prepare financially for their split

People of any age can find themselves in an unhappy marriage, even those who have been married for many years or even decades.

In fact, divorces of those over age 50 have increased so greatly that a phrase has been coined for them — “gray divorce.” Gray divorcees face issues their younger counterparts may not, especially when it comes to finances.

Preparing financially for divorce

Gray divorcees should prepare financially for their split. For example, retirement is a big issue. Spouses who once depended on their shared retirement savings to provide for them in their elder years are now facing the need to split these assets.

In addition, gray divorcees will be separating their residences, bills, utilities and other aspects of homeownership. Sometimes it makes more sense to sell the family home and divide the proceeds. This way, each spouse can move forward with a living situation that better meets their needs.

Do you have to litigate?

Litigating a divorce can be a time-consuming and expensive process. Some couples may want to end things on their own terms. These couples may benefit from divorce mediation.

In mediation, a third-party mediator facilitates discussions between the spouses as they work out their divorce issues such as property division and alimony. If the couple can reach a settlement through mediation, this settlement can be approved by the court thus finalizing the divorce.

Divorce mediation is private, less costly than litigation and many are more satisfied with the outcome since they had a say in it. Spouses can still be represented by an attorney if they choose to mediate their divorce.

Divorce has a financial impact

Divorce has a financial impact on spouses, especially a high-asset divorce. Fortunately, there are ways couples can address the financial issues in their divorce in a constructive manner. This way they can both move on from the divorce with their finances intact.