Gray Divorce in Hawaii: The Financial Cost of Starting Over
Divorce after 50 can reshape retirement. In Hawaii, the high cost of maintaining two households makes planning even more critical.
Divorce later in life – often called “gray divorce” – is increasingly common. Nearly 40% of people divorcing in the U.S. are now age 50 or older, compared with just 8% in 1990. For Hawaii residents, the financial consequences can be particularly challenging.
After decades of building a life together, one household suddenly becomes two. That can mean two housing payments, two sets of utilities, separate insurance and transportation costs, and the loss of many expenses once shared. In Hawaii, where housing and everyday living costs are already high, maintaining two households can quickly change even a well-prepared retirement plan.
There is also less time to recover financially. Someone divorcing at 60 may have only a few working years remaining to rebuild savings.
Dividing assets equally doesn’t necessarily create equal financial outcomes. A home, traditional IRA, Roth IRA and taxable investment account may have the same value on paper but very different tax consequences, liquidity and ability to generate retirement income.
Social Security, pensions, healthcare, insurance, beneficiary designations and estate plans also need careful review.
Before agreeing to a settlement, consider asking a different question – not simply, “Am I receiving my fair share?” but “Will my share allow me to live comfortably and sustainably for the next 20 or 30 years?”
An attorney can protect your legal interests, while a financial advisor can help you understand how today’s decisions may affect tomorrow’s retirement.
When divorce happens later in life, you aren’t simply dividing the past. You’re financially planning for two separate futures.
Get in touch with Stadia Financial today to learn more and schedule a complimentary consultation.
