By now, it's old news. More seniors are getting divorced. An analysis of divorce data from 1990 to 2021 was released in July 2024 by Bowling Green State University’s National Center for Family and Marriage Research. It revealed that divorce rates for 45+ rose, while rates dropped for those younger than 45. The most significant increase in divorce rates was among people 65 and older: The rate tripled from 1990 to 2021.¹

Some people call Boomers the most divorced generation. In financial terms, few “gray divorcees” are better off. Without careful planning, many divorced seniors may struggle to regain their financial footing, and divorce can become an obstacle to retirement.

However, following a few extra steps can protect their finances and help them prepare for a better financial future.

Make a Budget

When couples split, each partner's monthly expenses change dramatically. This is an excellent time to rethink personal budgets. List each individual’s costs, including mortgage or rent, household expenses, utilities, car payments, insurance, and other financial commitments. Each spouse should recalculate their income and see if their earnings can cover expenditures. If not, it's time to rethink expenses or rework savings and investments to cover shortfalls.

Get Individual Insurance 

Shared policies should be canceled, and each partner needs to find health, life, disability, homeowners, or automobile insurance. A divorce requires policyholders to update beneficiaries even if an existing policy is in one name. A financial professional can help with this process.

File Taxes Separately

Even if the divorce isn't final, it's now possible to file the last return separately as a married filing. Contact a tax professional to determine the best options for each situation.

Revisit Investment Decisions 

In a marriage, one partner often handles most financial decisions, including where, when, and how to invest. It's wise to talk with a financial professional to understand the current situation, how divorce will affect it, and what needs to be done to split assets.

Hire a Professional

Planning for a new future can be exciting or scary. A qualified financial professional can help divorced individuals navigate decisions and understand the financial implications of their choices. If you'd like to explore your financial options, contact Mark Vergenes today for more information.

¹"Divorce Skyrocketing Among Aging Boomers," AARP, September 6, 2022

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a life insurance strategy, it would be prudent to ensure you are insurable by having the policy approved. As with most financial decisions, expenses are associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.