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What do you need to consider if getting a gray divorce?

Divorce among couples whose children have left home has increased thanks to several factors. There is less social stigma than there once was around divorce. Women have more financial independence than they once did. Thanks to improved health care, people realize they still have plenty of years left to enjoy life once the kids have moved out.

If you are considering a so-called gray divorce, you won’t have to worry about issues such as child custody. Yet you do have other concerns which may be less relevant to couples who divorce when younger.

The older you are when you divorce, the less time you have to rebuild your finances

Divorce can take a considerable toll on your finances. As you do not have so many years of work left, you need to take extra care to work out how you will fund your retirement. Divorce could affect your entitlement to a share of your partner’s social security benefits. You need to understand how to divide things such as retirement plans in a tax-efficient way.

Running two households can cost more than running one. Yet, you may be able to reduce your costs by downsizing your life. If the kids have moved out, you may no longer need the big family house with the garden and all the upkeep and expense that entails.

As you get older, you are more likely to need to use your health insurance. If your cover was through your spouse’s employer, make sure you understand the cost of taking out a separate policy. Age and any pre-existing medical conditions could make it expensive.

Divorce does not need to be a bitter affair. Keeping your divorce amicable can save you both money, putting you both in a stronger financial position to enjoy your newfound freedom.