Why do grey divorcees face extra financial troubles?

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Posted By | June 7, 2021 | Articles

Experts put more effort into studying grey divorce as the trend in older divorcing couples continues to rise over the years. During these studies, they have found several interesting things. This includes the fact that grey divorcees face more financial troubles than their younger counterparts.

But why is this the case? What about waiting until you are older to divorce causes people to struggle with financial troubles?

Losing your benefits

Forbes examines the biggest challenges grey divorcees face. Many of these challenges, as mentioned, involve finances. Experts speculate this is due to the fact that grey divorcees are often in a very different life stage than younger couples.

For example, most couples in their 20s or 30s have many more years in the workforce ahead of them. While losing retirement benefits or savings feels difficult at any age, the fact of the matter is, young people have more time to make it up.

Compare that to someone in their 50s or 60s. They likely plan on retiring within years. Maybe they have already retired. Or perhaps they tapped out of the workforce decades ago to raise their family, and planned on living comfortably with their spouse’s retirement benefits later.

If you suddenly lose these benefits, you lose your retirement plan and have virtually no time to come up with a new one. Many return to the workforce or extend their time at work. Others focus on padding their income with alimony checks.

Dealing with asset division

Of course, there are issues with asset division, too. After all, so many years of marriage results in many joint and separate assets. This takes time and effort to sort through. It also provides the chance for some spouses to try hiding assets, especially if you have a particularly messy estate. This is why you may want to have legal help on hand. They can help you get through this complex period.