The divorce rate for couples over the age of 50 – dubbed “grey divorce” – has doubled since 1990.
A new survey reported by Investment News finds that “women are coping with the challenges better than men,” meaning that women are far more likely to adopt positive financial behaviors post-divorce than men.
After a divorce, women are much more likely to:
- get a job to increase their income
- start saving more
- cut their spending
- proactively seek out financial advice
In the survey, which was prepared by the American Institute of CPAs, financial planners were asked what could have better prepared their mid-career and retirement-age clients for “financial reality” prior to divorcing.
Here’s what they answered:
- a better understanding of how to manage personal finances
- understanding the long-term financial planning consequences of a divorce settlement
- understanding the tax implications of a divorce settlement
- updating wills or trusts
- increasing saving for retirement
- decreasing spending
The Takeaway: Candid and open communication about personal finances, with both partners taking part in setting goals, planning the budget, and managing assets, can help couples build a stronger marriage and bounce back faster in the event of divorce.