When you said I do, all those years ago- your plan did not consider the possibility that one of you would eventually say… I don’t. The first weeks of a New Year start the high season for divorce activity.
While the rates of divorce in the U.S. have been declining slightly over the last few years, the rate of divorce has doubled for Americans age 50+ since 1990. We call this age cohort silver divorce, but there is nothing lustrous about it.
A gray or silver divorce carries specific risks that younger couples do not face. Women in particular can be more financially fragile when they divorce after age 50. Research shows that women who divorce later in life, suffer a reduction in income and lifestyle to the tune of almost 50% as compared to men.
Why this disparity? To begin with, in general, women do not spend as many years in the workforce as men. As such, they tend not to have earned or saved as much as men and have less experience with financial matters and investments. Without good financial guidance for these women during the divorce process, there may not be adequate support or a fair division of the assets. In addition, women tend to live longer than men and suffer higher healthcare costs later in life.
Health care coverage represents another gap in silver divorce. Some women need to go back to work in order to secure healthcare coverage. My experience collaborating with women in the trenches of divorce has revealed that it is extremely difficult to build any kind of meaningful career at age 50.
Finally, the biggest gap is the knowledge and experience gap. By that I mean, research into family finances reveals that in half of all marriages, women report having little or no specific understanding about what the family earns, saves, spends, or owes.
While attorneys are experts in the laws of your state, most attorneys do not offer financial guidance related to the divorce. This is advice you can’t afford to miss. Employing the right financial strategies in divorce can make the difference between fair, workable agreements and those that lead to unfortunate outcomes.
How can individuals involved in silver divorce make better decisions related to the financial matters? Reach out to a Certified Divorce Financial Analyst CDFA® professional. We come alongside individuals, couples, and attorneys to work towards fair financial settlements in divorce. CDFA® professionals can also help individuals assess the longer-term outcomes of different settlement strategies by using financial planning tools & projections based on probability analysis.
The more you know going through silver divorce, the more likely you will make the best financial decisions possible.
1 American Psychological Association. Monitor on Psychology 2023 Nov-Dec.
2 National Institutes of Health (NIH) Economic consequences of Gray Divorce for Women, 2020
Eileen Stoner, CRPC®, CDFA®, is Executive Director/Financial Advisor of The Stoner Group at Morgan Stanley with the Global Wealth Management Division of Morgan Stanley in Cornelius, NC. The information contained in this article is not a solicitation to purchase or sell investments. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, or its affiliates.
She and her team can be reached at 704.896.9138 or via their website at advisor.morganstanley.com/the-stoner-group. 17505 West Catawba Ave. Suite 300, Cornelius, NC 28031
The use of the CDFA® designation does not permit the rendering of legal advice by Morgan Stanley or its Financial Advisors which may only be done by a licensed attorney. Morgan Stanley Smith Barney LLC. Member SIPC. CRC 4900663 10/2025
Photo credits to Chelsea Bren of Chelsea Bren Photo + Design.
