Retirement planning for many people is just a matter of getting the numbers to work. The only concern is setting aside enough resources to cover cost of living expenses after they stopped working.
Fewer people consider what will actually make their retirement worth enjoying, such as travel, the pursuit of passion projects and redeveloping family relationships. For some older adults, retirement will mean reconsidering some of their closest relationships, including their marriage.
Although it does have a negative impact on your financial situation, a gray divorce might actually be key to having a truly enjoyable retirement.
What does a gray divorce entail?
In some ways, a gray divorce is no different from any other marital dissolution. It involves two people who are no longer happy in their marriage seeking to go their separate ways. However, because of the age of the spouses and the length of their marriage, the entire process becomes more complex.
Often, gray divorce occurs after decades of marriage, meaning almost everything that the couple owns is part of the marital estate. Dividing that property can be very difficult. Beyond that, there’s also the proximity of retirement to consider.
Significantly diminishing what you have in your retirement account right before you retire or after you already have may make you feel insecure about your financial future. The good news is that with proper planning and a conscientious approach, gray divorce does not have to lead to a miserable and difficult retirement.
Uncontested gray divorces help couples minimize their expenses
One of the best ways that you can reduce the financial impact of a divorce later in life is to cooperate with your ex. If the two of you can settle your property division issues and any support matters outside of court, you will likely spend substantially less to divorce.
You will still need your own attorneys and will still have to split all of your major assets, but you won’t lose thousands of dollars to court costs while litigating the details of your divorce. Negotiating a settlement in an upcoming gray divorce requires attention to detail and a focus on your long-term needs.
Learning more about the practical consequences of a complex divorce can help you plan better for the process.