Sometimes divorce happens, even to people who have spent years planning their lives together. In fact, recent statistics show that older couples are parting ways in increasing numbers. According to a 2013 study by the National Center for Family and Marriage Research at Bowling Green State University in Ohio, the divorce rate for people over age 50 doubled between 1990 and 2010. Untangling two financial lives can be tricky business, and one or both parties may have to learn to manage their money in completely different ways.
Reorienting your finances after divorce is not about figuring out who is to blame, but rather accepting the new reality and creating an actionable, thoughtful checklist of decisions to make. Those newly single must consider a myriad of financial needs previously covered as a pair and likely long forgotten—insurance, long-term care, income protection and retirement planning, just to name a few.