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How gray divorce affects standard of living for men and women

On Behalf of | Apr 22, 2024 | Firm News

Gray divorce, or divorce involving those 50 and above, can significantly impact the standard of living for both men and women. As couples separate after decades of marriage, they often face unique financial challenges that can alter their lifestyle.

Understanding these effects is helpful for anyone navigating the complexities of gray divorce.

Financial division

Gray divorce affects the standard of living of men and women through the division of assets. Many couples have accumulated significant wealth and assets over the years. This can include retirement savings, property and investments. Splitting these assets can lead to a reduction in financial resources for both parties. It can also impact their ability to maintain their pre-divorce standard of living.

Retirement concerns

For those nearing retirement age, gray divorce can have profound implications for their retirement plans. Dividing retirement savings can diminish the resources available to support each spouse during their later years. This can result in a lower standard of living for both parties, as they may need to adjust their retirement expectations and potentially delay retirement to compensate for the financial loss incurred through divorce.

Housing and living expenses

Gray divorce often necessitates changes in living arrangements and expenses. Divorcing spouses may need to sell the family home. They may also have to downsize to more affordable housing options. This can impact the standard of living by reducing the quality of housing or increasing housing costs. People may also need to adjust to living on a single income. This can further strain financial resources and lead to a lower overall standard of living.

According to Kiplinger, women over 50 feel the effects of a divorce on their standards of living more than men. When a marriage ends, the average woman sees her standard of living fall by 45%. The average man in the same situation sees his standard of living decrease by 21%.