Older Women Initiating Divorce: Prioritizing Happiness and Independence

Introduction

Contrary to traditional norms, a growing number of older women are choosing to initiate divorce, valuing their happiness and independence over financial security. Research conducted by AARP reveals that women aged 50 and older, commonly referred to as “gray divorce,” initiate divorce proceedings in 66% of cases.

Shifting Dynamics

According to Susan Hirshman, the director of wealth management for Schwab Wealth Advisory and the Schwab Center for Financial Research, a significant shift is occurring. “We are witnessing an increasing number of women opting to get divorced later in life, and in most cases, it is women who are driving this decision,” she states. In stark contrast to previous generations, women today are not financially dependent on men and have the freedom to choose their own path.

Independence Over Finances

Renee Hanson, a private wealth adviser at Ameriprise Financial, highlights that women are prioritizing their personal happiness above financial considerations. “Finances are no longer the sole determining factor,” Hanson explains. “Women now possess a higher level of financial literacy, empowering them to make informed decisions about their future.”

Delaying Divorce

AARP’s research suggests that one reason for delaying divorce until later in life is the desire to wait until their children have left home. This consideration allows individuals to navigate the emotional complexities of ending a marriage while minimizing disruption to their family unit. Ultimately, the top reasons for divorce among these age groups include verbal, emotional, or physical abuse; differences in values and lifestyles; infidelity; and substance abuse.

Financial Consequences

However, the financial consequences of divorce are more significant for older women than men. The Center for Family and Demographic Research at Bowling Green State University in Ohio reveals that after a gray divorce, women experience a staggering decline of 45% in their standard of living, compared to a 21% decline for men. Shockingly, 27% of women find themselves living below the federal poverty guidelines after divorce, whereas the same applies to 14% of men.

Important Considerations

Regardless of who initiates the divorce, it is crucial to be aware of specific issues. If contemplating a divorce at any age, it is essential to fully understand the cost of living and how the division of income will impact one’s budget, advises Hanson.

It is evident that older women are redefining societal expectations and embracing their freedom to pursue happiness and independence, even if it means making sacrifices in terms of financial stability.

The Impact of Divorce on Financial Stability

Divorce can have significant financial implications, particularly for couples who are no longer able to share a single household. According to Derek Pszenny, co-founder of Carolina Wealth Management, maintaining two separate homes can significantly affect the standard of living for both spouses.

With the expenses of two households, money may not stretch as far as it once did. Pszenny emphasizes that individuals need to adjust to this new reality and prepare accordingly.

For older individuals going through a divorce, the situation becomes even more complex. It may be challenging or even impossible for them to reenter the workforce or acquire new skills. In such cases, additional measures must be taken to ensure financial stability.

According to experts such as Hanson, seeking the guidance of a certified divorce financial analyst (CDFA) is highly recommended. These professionals are specifically trained to navigate the financial complexities associated with divorce and help individuals avoid common pitfalls.

Women, in particular, tend to be more proactive in seeking outside advice during divorce proceedings. Hanson highlights their comfort in asking for assistance and their willingness to be vulnerable in order to gain a better understanding of their options.

In addition to a CDFA, assembling a team of coaches including a divorce attorney and counselor can provide invaluable support throughout the process. It is essential to recognize that each professional has a specific role and expertise, and relying on their guidance can lead to better outcomes.

Furthermore, individuals going through a divorce should not overlook the importance of updating their estate planning documents. Wills, powers of attorney, and account beneficiaries need to reflect the new marital status to ensure that all legal matters are in order.

Although sentimental attachments often lead individuals to want to keep the family home, it is crucial to view it as a valuable asset. Emotional decisions should be separated from the financial considerations, as maintaining the home may not always be practical or financially feasible.

Lastly, it is vital to avoid unnecessary conflicts over items of limited value. Pszenny warns against engaging in expensive legal battles simply due to sentimentality or a desire to prevent the other party from having certain possessions. Divorce should be approached as a business decision, with emotions set aside in favor of a fair and efficient process.