A gray divorce in Florida is in increasingly common phenomenon. Legally, a divorce between elders is just like any other, but financially, it tends to be much more complex. It can be hard to stay financially stable after a divorce late in life without the right preparation.
What’s at stake in a gray divorce
Divorce can be a financial threat even for the young. For older people who have accumulated wealth like real estate, retirement accounts, savings and investments, divorce can be a major problem; dividing those assets can have serious impact on retirement planning and other goals.
A divorce at a late age will require a reassessment and rethinking of key aspects of financial health. For example, if one spouse relies on the other for health insurance, they could be thrown into the expensive and complex private insurance market instead. They might lose access to housing or lose a chunk of their retirement savings. Moreover, they lose the benefits of pooled income and split expenses.
There are a lot of important choices to make in a gray divorce, such as how to deal with the house. There is usually a lot of emotional attachment to the home, but it can be costly to maintain and own, and it likely means giving up on a lot of financial value in asset division. It might not be worth the trouble.
Gray divorce can have a major shock on financial planning for those who do not prepare and are not aware of the risks. A gray divorce has much more at stake in terms of assets and other elements, so it’s important to approach the property division process carefully.