Great article from the LA Times about the financial impact of divorce on persons over 50. Some people have enough assets to weather the storm, but for others they have barely finished paying for college and having to split everything guarantees an underfunded retirement and no time to replace the lost capital. Divorces for persons over 50 are referred to as “gray” divorces as a means to try to distinguish them from divorces of younger couples who are more likely to have limited assets and retirement and minor children in the home. Basically, divorcing over 50 causes increased depression and results in financial changes and hardship that may be unrecoverable.
You can read the full article HERE but here are some key quotes I found especially relevant to persons going through a divorce in Tennessee, and that I have witnessed in my own divorce cases as a divorce attorney in Nashville. It is alarming to see some of these numbers in black and white.
Per the article:
- If you get divorced after age 50, expect your wealth to drop by about 50%
- Researchers found that when women divorce after age 50, standard of living plunges 45%. That’s about double the decline found in previous research on younger divorced women.
- Researchers found older men see their standard of living drop 21% after a divorce. Previous studies have found a small or negligible effect of divorce on younger men’s incomes.
- “Divorcing CEOs may even find ways to game the system. Research by George Mason University law professor Jordan Neyland suggests a CEO’s divorce can influence their compensation. Data show large companies raise CEO salaries and other benefits by more than $2 million on average after a divorce. The reason for the higher pay may be to help the CEOs (overwhelmingly men) cover the costs of cash settlements with their spouses (overwhelmingly women) without selling shares.”
- After a gray divorce, it takes about four years for depression to return to earlier levels.
- Gray-divorced women age 63 and older face a poverty rate of 26.9%, compared with 11.4% for gray-divorced men and only about 3% for couples who stayed married or re-married after a divorce.
If the link above does not work, you can reach the article by copying and pasting the following URL into your browser: https://www.latimes.com/business/story/2019-07-19/divorce-destroys-finances-of-americans-over-50?utm_campaign=Twitter%20Organic&utm_content=97011738&utm_medium=social&utm_source=twitter&hss_channel=tw-330566571
Questions about a divorce or going through a “gray” divorce yourself, either contested or uncontested? Contact Nashville Tennessee Divorce Lawyer Morgan Smith, a 10 Best divorce attorney located in Nashville, using the contact form below or by calling us at (615) 620-5848 to discuss your options.