While divorce has decreased among most age groups, it is increasing among the over 50s. A recent report highlighted the financial struggles many women encounter when they divorce when after 50 years of age.
Why can a divorce later in life be more financially challenging?
- You may struggle to find adequate employment: If you have not worked for some time, it can be hard to get back into the job market. Many women sacrificed career opportunities to raise their family. Thus, you are less likely to be able to pick up a high-flying position that allows you to earn a decent salary to live and save on.
- You do not have as many years to rebuild for retirement: Saving for retirement takes time. Financial advisors recommend you need to start in your 20s. The fewer working years you have left, the harder it will be to put aside the money you need. Bear in mind your divorce may be expensive and eat into the money you had set aside.
- You might lose Social Security benefits: If you were married for less than 10 years, you might lose entitlement to benefits through your spouse.
- You might lose health insurance: You are more likely to need your healthcare insurance as you age. The older you are, the more likely you will have a pre-existing condition that prevents you from taking out a new policy. If your insurance came from your spouse’s employer, you might struggle to replace it. Or doing so may come at a considerable cost.
While it can be financially challenging to divorce late, you may decide it is worth it. When negotiating your divorce, understanding your future financial prospects can help you determine your settlement needs.