Divorcing after 50, also known as gray divorce, can have a financial impact, especially on women, that might seem very challenging to overcome since women’s standard of living might decrease by as much as 42%. However, women in California can overcome this impact and recover financially.
Learn about your financial situation
Before you start the divorce process, you should become knowledgeable about your financial situation. This is very important if you were unaware of how your finances worked during your marriage. To prepare for this, you can do several things, including:
- Listing all your assets and debts
- Finding out the value of your home
- Consulting with a financial advisor to guide you through the process
- Gathering copies of important documents
Figure out what you will need financially to support yourself after the divorce
You will need to create a realistic budget for life post-divorce. For this, you should track your expenses for a certain amount of time to identify your needs versus your luxuries. You might need to adjust after the divorce, such as moving to a smaller home or giving up some luxuries, even if temporarily, and these should be accounted for in the budget.
Negotiate carefully during the division of property
Negotiating over your assets and debts is not just about the moment. As part of your negotiation, you should consider the long-term effects of the division of these assets, including what they might be worth in five or 10 years and the tax implications involved with each decision. This way, you can reach an agreement that is fair and favorable.
Recovering financially from a gray divorce involves educating yourself about your finances, planning and being flexible about what life will be like after the divorce. You might need to learn a new skill, polish old ones, and rejoin the workforce.