Kathryn Jankowski
By Kathryn Jankowski
People of all ages divorce but there seems to be a rise in the percentage of people who are divorcing later in life. Why does that matter? The one very profound fact is that when you are left with half of your wealth it may not be enough to support the retirement lifestyle that you’ve worked so many years to accomplish. With half of the retirement income gone to support your spouses income needs, ‘gray’ divorcees may have to look for other alternatives for income such as going back to work or taking in a boarder to two.
‘Gray’ divorcees have less time to recover financially so their financial needs become a big motivating factor in their life. Because they realize that living with someone is less costly than living alone they may be drawn to find someone to co-habitate with or they may even consider remarriage for financial reasons. These options may bring about a whole host of other considerations such as how to co-habitate or remarry while ensuring that your new spouse doesn’t have a foothold into your children’s intended inheritance.
Depending on where ‘grays’ live, sometimes downsizing the family home home and moving to a more rural community could be an answer. Of course, this brings a host of other issues such as proximity to children or other important family members as well as having to find new friends to socialize with in an environment in which there is no familiarity.
The golden years may not be looking so golden! Of course, I’m biased when I say that a good financial planner can go a long way in ensuring the right choices are considered. I would also suggest seeking legal advice before co-habitating or remarrying to ensure you aren’t in a position to have to share your half of your half!
Kathryn Jankowski, B.A., CFP, FMA, FDS, FCSI
Vice President, Financial Divorce Specialist
26 Wellington Street East, Suite 710
Toronto, ON M9B 2Z5
416-640-8591
kjankowski@tewealth.com