When you hear of an Arkansas couple divorcing, you probably picture someone who has been married for just a few years. However, it is becoming much more likely that it is a senior couple who has decided to end their marriage. In fact, this phenomenon has even been given the name of “gray divorce.” How does a gray divorce impact your financial life?
According to Forbes, the number of couples above the age of 50 separating is on the rise, despite a dropping divorce rate overall. In fact, in this age demographic there has been a 109% increase over the past 25 years. When you are younger, many divorce issues center around the children, who are probably grown or nearly grown when you are older. And, if you split up in your senior years, you have different financial considerations.
Unlike younger couples with several decades of earning potential in front of them, you might have a fixed amount of assets since you may already be retired. Or, there may be a limited chance to increase your revenue in your last years of working, so you need to be careful about your financial planning. Plus, there can be many implications for your retirement accounts and taxes upon divorcing.
Alternatively, you may be lucky enough to have acquired a substantial amount of assets that you now need to separate between yourselves. In addition to your primary residence, you may also have:
- Significant financial accounts
- One or more vacation homes
- Expensive jewelry or artwork
- Multiple luxury cars or boats
If you and your ex cannot decide how to fairly apportion these assets, you may need to sell them and then divide the proceeds.
This information is provided for educational purposes only and should not be interpreted as legal advice.