Divorce Over 50: The Financial Impact of Divorcing Later in Life
According to researchers, even though divorce rates generally seem to be stabilizing, the divorce rate among the baby boomer generation continues to increase. In the past ten years, the divorce rate among people in their 50s has doubled and more than doubled for those in their 60s.
This trend is proving to have a disproportionately negative effect on women over 50. Economic disparity between men and women increases with age. Recent studies show that one in five women over 65 are still working; this number is two times higher than it was in the 1980s.
In contrast to 30-something divorce, splitting up later in life is proving to have severe financial implications on the older population, especially women. While divorcing at any age has financial impacts to consider, divorcing when you’re over 50 can make these challenges even more difficult. For example, often in divorce women tend to want to maintain the family home. Because of this, they end up trading other assets, namely retirement benefits. This trade-off results in less retirement savings, forcing women to work longer to afford the cost of keeping the home, whereas, a 30-something divorce also allows for more working time to recoup the financial losses.
Today’s women over 50 statistically worked more so inside the home, raising children and maintaining the household while their husbands worked. As a result, it can prove difficult for 50+ women to obtain a job with decent pay and good benefits. Staggeringly, 27% of divorced women over 50 are in poverty compared to just 11% of men over 50.
Regardless of the reason for an upswing in the rate of divorce for people over 50, the resulting economic hardship is taking its toll on American seniors. Nevertheless, with careful handling, it is possible to live comfortably and be happy after divorcing later in life.
It is important to hire a knowledgeable divorce attorney who will evaluate both the current and future values of assets. If you would like to speak with an experienced divorce attorney contact The Family Law and Fertility Law Group at 513-455-4700 or contact us online.