Rise of ‘ Gray’ Divorce Forces Financial Reckoning Right after 50
For some, it means liberation. For others, loss. For women in particular, the duplicity of the divorce rate for the 50-plus crowd since the 1990s can mean something far more prosaic: a have to shoulder the big financial decisions they’ d let their spouses cope with when they were married.
Frequently , they find some nasty impresses after he’ s gone.
Most of married women— 56 percent— nevertheless leave major investing and economic planning decisions to their spouse, according to a report, “ Own Your own Worth, ” released Fri by UBS Global Wealth Administration. It’ s not just older women slipping into the more traditional sex roles of their parents: Some sixty one percent of millennial women stated they leave investment decisions for their husbands. That compares with 54% for baby boomer women. UBS surveyed more than 600 women that have either been divorced or widowed within the last five years, along with one, 500 couples. Respondents had to have at least $250, 000 within investable assets.
The difference is stark in behaviour toward making major financial decisions between married women and ladies who were divorced or widowed. Fifty-nine percent of widows and divorcees regret not taking part in long-term monetary planning when they were in a few. Eighty-five percent of married females who weren’ t active for making long-term financial decisions said their particular spouse knows more about financial problems than they do. Eighty percent of girls said they were content with how monetary responsibilities were split in their relationship.
“ Regardless of all the strides that women make, they are still abdicating important monetary decisions that will profoundly affect their own future, ” said Paula Polito, chief strategy officer for UBS Global Wealth Management, in an e-mail. “ Women and divorcees who else find themselves alone wish they had already been more involved in finances while these were married. Nearly all of them advise some other women to get more involved early on plus break the cycle of economic abdication. ”
Those women practice the actual preach. Of the divorced or even widowed women in the survey that remarried, eight out of 10 had been more active in the financial decision-making within their current relationship. (That’ s an excellent move, since subsequent marriages have better pay of dissolving than do very first marriages— and since women possess longer life expectancies than guys. )
Divorcees might have been burned by financial surprises that will popped up in the split. Fifty-six percent of divorcees and widows discovered new financial wrinkles along the way of splitting up. Not all were negative— some women discovered 401(k) pension saving plans they didn’ big t know existed, or were basically surprised at how much they didn’ t know about their finances.
Among the most common negative surprises had been hidden spending, hidden debt plus hidden accounts. Outdated wills had been another unwelcome discovery. In hindsight, 94 percent of widows plus divorcees would insist on complete monetary transparency with their spouse.