The divorce rate among over-50s is booming. Dubbed the ‘Silver Splitters’ there is a global tsunami of people in their 50s and 60s who are saying ‘no’. Moxie Market takes a look at what this can mean for your finances.
Figures suggest the divorce rate among baby boomers is booming, with divorces doubling in the last decade. Today one in four in this age group are untying the marital knot.
The over 50s and 60s are reshaping the contours of divorce, choosing to say ‘I don’t’ at a rate of almost three times that of their parents. While every situation is different, even after property and assets are settled women can find themselves requiring a mortgage to purchase a new home and having to remain in the workforce for longer than planned.
The major banks’ lending criteria covers income and working years remaining, so depending on one’s current salary and likelihood of years before retirement, shopping around may be needed.
Some of the new trends we see now are for those in similar situations banding together to rent a home that is more in keeping with the standard they were used to rather than buying into a property that is burdened with a mortgage and maintenance responsibilities. Another is to take in international students or boarders to cover costs.
Housesitting is another option, but still requires a home base (children) if no sitting jobs are available for a period. This option presents a wonderful opportunity for overseas travel.
Although popular in North America and Europe, certified divorce financial planners are yet to make it to New Zealand. You can start yourself, by taking stock of your day-to-day finances, then work your way up to tackling longer-term money issues.