Gray divorce trends highlight complex retirement and financial planning

The phenomenon of ‘gray divorce’—divorce occurring among adults aged 50 or older—has seen a significant increase. Data from the National Center for Family and Marriage Research at Bowling Green State University indicates that while only 8 percent of divorces in 1990 involved individuals aged 50 or older, that figure rose to nearly 40 percent by 2022.

Financial planning is a critical component of these separations, as long-term marriages often involve complex shared assets such as retirement accounts, pensions, and Social Security benefits. Notably, Social Security is governed by federal law rather than state law, meaning benefits generally cannot be transferred or assigned as marital property in the same way other assets are divided.

Beyond the immediate division of property, divorce requires preparing for the costs of maintaining two separate households. Key considerations include managing joint debts, evaluating the long-term affordability of a family home on a single income, and accounting for ongoing expenses like healthcare, childcare, and insurance.