GREY DIVORCE: The Not-So-Golden Years!

At a time in life when people are supposed to be focusing on retirement plans, according to Statistic Canada, the highest rate of increase in divorce is between couples aged 50 and older, creating the term ‘Grey Divorce’.

There are many theories about why this segment is on the rise. The Japanese call it ‘Retired Husband Syndrome’. Many believe that grey divorces can be attributed to those couples who stay together for years, for their children’s sake. Others cite the “life is short” theory; in other words, when you feel like you only have so much time left and want to spend that as you wish rather than with someone you feel you have nothing in common with anymore. Women often believe their husbands who initiate divorce have had a “mid-life” crisis. And lastly, divorce has simply become more acceptable over the years compared with the previous generation.

Regardless of the reason, the financial ramifications of divorce at the age of 50 and older are significant. Imagine for a moment being married for 37 years and in your early 60s. You are making plans to travel, spend time with grandchildren and take up a new hobby. Then, your spouse decides he/she wants a divorce.

In some cases, a couple that could have managed financially in retirement with the assets they accumulated cannot do so very easily if two separate households will now have to be supported. Unlike their younger counterparts, older divorcees do not have the gift of time to rebuild their net worth.

Without proper planning, a divorce later in life can leave you financially crippled. It can be much more difficult to maintain lifestyle. In Grey Divorce, Freedom 55 may often feel like its becoming Freedom 85. Even in divorce though, future risks can be shared!