Click here for How to be single at 50 Divorce rates are rising for quinquagenarians and those who are older. Catherine Fredman is an experienced ghostwriter who has written five national bestsellers. She has 35+ years of experience as a reporter and editor. Pamela Rodriguez is a Certified Financial Planner®, Series 7 and 66 license holder, with 10 years of experience in Financial Planning and Retirement Planning. She is the founder and CEO of Fulfilled Finances LLC, the Social Security Presenter for AARP, and the Treasurer for the Financial Planning Association of NorCal. Divorce rates in the United States are declining—except for people over 50. In fact, since 1990, the divorce rate for people over 50 has doubled. “If late-life divorce were a disease,” says Jay Lebow, a psychologist at the Family Institute at Northwestern University, “it would be an epidemic.” As married couples grow older, the glue that holds many marriages together dissolves, be it children, shared interests, or financial dependence. Key Takeaways. Divorce rates for people age 50 and over are rising. Household income after a divorce drops for women much more than for men. At a minimum, you need a divorce lawyer and a certified divorce financial analyst (CDFA) to help you navigate the process. Make sure to create an inventory of all your assets and your debts. Don’t forget to include retirement accounts, health insurance, and tax implications. The Financial Fallout of Divorcing After 50. Divorce at this age can be financially devastating. The cost of living is considerably more when you’re single than when two of you share expenses. More worrisome, a mid-to later-life split can shatter retirement plans. There’s less time to recoup losses, pay off debt, and weather stock market fluctuations. Also, you may be approaching the end of your peak earning years, so there’s less of a chance of making up financial shortfalls with a steady salary. These concerns are magnified for women. After a divorce, household income for women drops precipitously. In fact, according to the U.S. Census Bureau, 20% of women fall into poverty after a divorce. What’s more, because women’s life expectancy is 80.5 years in the first half of 2020 (versus 75.1 years for men), a divorced woman can find herself living for a lot longer with a lot less. 80.5 Years. A woman's life expectancy as of the first half of 2020, as opposed to 75.1 years for men. A Dozen Common Divorce Mistakes. Divorce proceedings can pull the plug on your retirement dreams: legal fees, therapist bills, and single-handedly shouldering bills you once shared can drain your savings. You can protect your financial future by avoiding the following all-too-common mistakes. 1. Failing to Create an Inventory of Assets. Often one partner has a better understanding of a couple’s finances than the other. This person likely has a solid idea of how much money their investment accounts hold, the value of their assets, and how much cash is in their savings accounts, while the other partner isn’t as up to speed. If you’re the latter person, you’ll want to take an inventory of all assets before attempting to split them up. In addition to knowing what’s in your bank accounts, you should also track your retirement accounts and life insurance policies. If you are concerned about your finances, visit your local legal aid website where you may be able to pro bono legal assistance and/or representation in a civil case, if your divorce heads to court. 2. Holding Onto the House. If you end up with the family home, think long and hard about keeping it. It may be your refuge, and not moving might seem less disruptive for any children still living at home. Still, it can also be a money pit, especially with only one person paying for the upkeep, property taxes, and emergency repairs. Before deciding to stay, figure out if you can afford the mortgage and the costs associated with maintaining the property. Also, keep in mind that property values fluctuate, so don’t assume you can sell your house for the amount you need if money becomes an issue. 3. Not Knowing What You Owe. Promising “to have and to hold” can bounce back to bite you. In the nine states with community property laws—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin—you’ll be held responsible for half of your spouse’s debts even if the debt isn’t in your name. Even in non–community-property states, you may be liable for jointly held credit cards or loans. Get a full credit report for both you and your spouse, so there are no surprises about who owes what.
