How to Recover Financially After a Gray Divorce

It’s an unfortunate truth that getting divorced, no matter the age, can have a devastating impact on your finances. This is even more true as you get older, when it can significantly alter your retirement plans and long-term financial stability. For couples divorcing later in life, there is often less time to rebuild savings before retirement begins.

The good news is that getting divorced later in life doesn’t have to completely derail your retirement. There are ways to help soften the financial impact, including downsizing, delaying Social Security benefits when possible, reducing expenses, and creating a realistic post-divorce retirement budget. While a gray divorce can certainly be a struggle both emotionally and financially, it does not mean retirement is ruined forever.

This post was updated on May 14, 2026.

The Downsides of Divorce at Retirement Age

Divorce in your 60s will result in plenty of challenges that can impact your retirement. First and most important is any division of assets, which is likely to result in a 50/50 split of 401(k)s, IRAs, pensions, and brokerage accounts accumulated during the marriage.

The same applies to a home, as one party may be able to retain it, or it may be required to be sold, with any equity split evenly between the parties. Ultimately, savings, investments, and assets acquired during the marriage are often divided during divorce proceedings. Couples should also remember that retirement account divisions often require legal tools such as Qualified Domestic Relations Orders (QDROs), especially when pensions or workplace retirement plans are involved.

This can be a difficult scenario. Assuming couples divorcing in their 60s have been married for decades, it can take significant time to adjust to living separately after building a life together.

As it stands, divorce rates among adults over 50 have risen significantly over the last several decades, making gray divorce one of the fastest-growing divorce trends in the United States. This makes proper planning extremely important, especially for anyone preparing to navigate retirement on a single income.

What To Do After a Divorce

If you are going through a divorce around retirement age, it’s essential to understand what steps to take next. First, and arguably most important, is meeting with a financial advisor who can help you create a realistic retirement plan based on your remaining assets and expected income. This can help you determine what kind of lifestyle is sustainable, when to claim Social Security, and whether you may qualify for spousal Social Security benefits based on a former spouse’s earnings record if the marriage lasted at least 10 years.

Additionally, you must consider how to rebuild your life, as divorce impacts more than just finances. Lean on trusted friends and family members as a support system during this transition, as emotional support can be just as important as financial planning.

One important factor many people overlook after a gray divorce is healthcare planning. If one spouse previously relied on the other’s employer-sponsored health insurance, divorce may require finding entirely new coverage just a few years before Medicare eligibility begins at age 65. Even after qualifying for Medicare, retirees still have to budget for premiums, supplemental coverage, prescriptions, and long-term healthcare expenses. Medical costs can become one of the largest expenses in retirement, making it especially important for newly divorced individuals to factor healthcare into their long-term financial planning.

How to Rebuild Financially

Whether you are 62 or 70 and undergoing a divorce, you may have to consider returning to work in some capacity. Whether this means part-time consulting, freelance work, seasonal employment, or monetizing existing skills, supplemental income can help stabilize retirement finances after divorce. While re-entering the workforce later in life may feel intimidating, many retirees find flexible work opportunities that fit their lifestyle and schedule.

You may also need to make sacrifices, which ties back to the idea of downsizing and reducing expenses wherever possible. Cutting monthly expenses is often one of the fastest ways to regain financial stability after divorce. Paying down high-interest debt, simplifying investment accounts, and creating a realistic long-term budget can also help reduce financial stress during retirement.

This all circles back to meeting with a financial advisor, so you understand not only your assets but also your debts, healthcare costs, taxes, and retirement income needs. It is also important to update beneficiaries on retirement accounts, insurance policies, and estate planning documents following a divorce. A fiduciary financial advisor can help create a long-term strategy while also making sure you feel comfortable and informed about your financial future.

Although divorce later in life can force major adjustments, careful planning and realistic expectations can still allow people to build a fulfilling retirement.