💔 Gray Divorce and Retirement: How to Protect Your Finances After 60

haleyn4
Oct 7
3 min read

Divorce is never easy. But divorce after 60—often called gray divorce—comes with a special kind of financial risk.

You’re closer to retirement (or already there). Your income might be fixed. Your nest egg may be split in half. And unlike younger couples, you don’t have decades to rebuild.

If you or someone you know is navigating a divorce later in life, this blog is for you.

📈 What Is Gray Divorce?

Gray divorce refers to divorces occurring at age 60 and older, often after decades of marriage.

The trend is growing fast:

Since 1990, the divorce rate for people over 65 has tripled
Nearly 36% of all divorces in the U.S. now involve couples 50+
In many cases, divorce happens right on the doorstep of retirement

And that’s where the financial fallout begins.

💥 Why Divorce After 60 Hits Harder

Unlike younger divorcees, older adults:

Can’t recoup losses through work as easily
Have less time for compounding to grow new savings
May be relying heavily on shared assets and income streams

“It’s not just emotional—it’s financial. And without a plan, the damage can be permanent.” – Alan Porter

💸 What Happens to Retirement Assets?

Divorce proceedings can divide:

401(k)s
IRAs
Pensions
Annuities
Cash value life insurance
Even Social Security benefits

This often means:

Cutting your retirement funds in half
Losing access to spousal health benefits
Facing new taxes, higher premiums, or COBRA coverage
Reevaluating Required Minimum Distributions (RMDs)

🏥 The Hidden Healthcare Risk

Couples may plan to rely on each other for caregiving—but divorce changes everything.

The average cost of healthcare in retirement for a couple is $310,000.Divorce can push that number over $400,000 when you add:

Separate insurance plans
Paid caregivers instead of a spouse
Lack of access to shared long-term care policies

That’s why planning for long-term care alone is critical after gray divorce.

🧠 6 Financial Steps to Take Immediately

If you're going through (or considering) divorce after 60:

Get organized – Know what accounts and policies you have
Meet with specialists – Financial advisors, estate attorneys, tax pros
Rework your retirement plan – New income sources, new goals
Secure your credit – Avoid joint debt complications
Review legal documents – Update wills, beneficiaries, powers of attorney
Start thinking about healthcare – Especially long-term care protection

🛠️ There Is Hope (With the Right Plan)

Gray divorce doesn’t mean financial disaster. But it does mean:

You need to think differently
You need to act quickly
You need the right people in your corner

At Strategic Wealth Strategies, I work with clients in this exact situation—rebuilding confidence, protecting what’s left, and making sure retirement is still possible.

👨‍⚕️ Why You Need a Team—Not Just an Advisor

Most people only work with a generalist. But gray divorce is complex.

That’s why I’ve built a team of specialists—tax experts, asset protection attorneys, and estate planners—who work together to give you clear, strategic answers.