October 11, 2018
"Grey Divorce": Why It Is Important For Every Women Of Every Age to Understand This Dynamic
By: LAURIE FRIED
There is a lot of talk about Grey Divorce these days. The rate of divorce of people over 50 has increased dramatically. There is a lot of discussion over the drivers, but the thing that is most clear is that women bear a disproportionate brunt of the financial downside. Often the women have been out of the workforce for a long time, and with fewer working years left they have fewer options to make up the financial losses they may have experienced.
But this isn’t a problem just for the older ladies among us.
So why is it important to for 30 and 40 somethings to understand Grey Divorce? Because the decisions you make in this time period are the ones that determine whether you can be susceptible to this dynamic later in life.
It is the women who spend years and years out of the workforce who are most susceptible. Add a restrictive prenuptial agreement to that and a woman can find herself late in life with few financial assets and no work history on which to rely to create income.
Does this mean all women should be in the workforce? Personally, I believe it is always safest to keep your toe in the waters somehow even on a part-time basis. But if that is not what you want, then there are other ways to protect your financial future. Have a straight talk with your partner and involve financial and legal professionals where necessary to make sure that you are protected as much as possible.
As always, I advocate for women making whatever lifestyle and career choices they are comfortable with….so long as they understand the implications of the choices they are making. Understanding grey divorce and its potential impact on your long-term financial security means that you can make careful and considered decisions about how to protect your future, especially when you are still relatively young.