Deciding to divorce is rarely an easy process. And the practice of putting this decision into action can become even more complicated than it may otherwise be if you are older, you have been married for years and your assets are significantly entwined with your spouse’s.
In the event that both spouses are nearing retirement, and if they aren’t prepared, one or both parties may face financial hardship in the wake of a decision to pursue a so-called “gray” divorce.
The impact of a gray divorce on finances
Due to long-term accumulation of assets, retirement funds and other resources during the marriage, a gray divorce can significantly impact each spouse’s finances. However, women are hit harder. On average, women who divorced after 50 saw their household income fall by 41%, while men saw only a 23% decrease.
Therefore, the first step in preparing for a gray divorce is to have a comprehensive understanding of your financial situation. This includes educating yourself on items such as:
- Current assets, including savings, retirement funds and real estate
- Current debts
- Income
- Expenses
This will help you develop a realistic financial plan and budget.
Florida is an equitable distribution state, which means marital assets are divided fairly, though not necessarily equally, in the event of a litigated divorce. Therefore, it’s crucial to inventory and valuate assets as soon as possible.
Alimony is often a factor in gray divorces. In the event of a litigated divorce process, to determine the amount and duration of alimony, a judge will consider the following factors:
- The length of the marriage
- Standard of living during the marriage
- The age, physical, emotional, and mental condition of the spouse requesting alimony, along with their ability to meet their own needs
- The financial resources of each spouse
Navigating a gray divorce can be challenging. Working with someone who can ensure your rights and interests are protected can offer you the best chance for post-divorce financial stability.