Facing divorce later in life (gray divorce) is never easy, especially when decades of shared experiences, assets and routines are suddenly in flux.
Late-life divorces can feel overwhelming, particularly when community property laws add complexity to marital property division. However, with thoughtful preparation, you can step into this next chapter with confidence.
Understand your financial picture
Before making any decisions, take stock of your full financial situation. This includes gathering documents related to income, retirement accounts, pensions, real estate and debt.
Review your credit reports and note any joint accounts or liabilities. Having a clear understanding of what you own – and owe – can empower you in negotiations and help ensure you’re not overlooking long-term economic impacts.
Separate joint finances
Untangling shared finances is often one of the most delicate aspects of a gray divorce. Begin by opening individual bank accounts and establishing your own lines of credit if needed.
Work with your spouse to freeze or close joint accounts to prevent future complications. Keep detailed records of any changes, especially if you’re continuing to share some expenses during the transition.
Plan for post-divorce expenses
Retirement income, health insurance and housing are often front and center after a gray divorce. Create a post-divorce budget that reflects your new reality.
Additionally, consider how spousal support, social security benefits or pension division may affect your cash flow. If you were on your spouse’s health insurance, explore COBRA or other health insurance alternatives.
Although the road may feel uncertain, proactive financial planning helps ease stress and protect your future. With the right legal guidance and preparation, you can lay the groundwork for a stable and empowered new beginning.