The split of older couples, sometimes called "gray divorce," presents multiple legal and financial issues.
Chris Nason, head of private wealth at Wealth.com, has seen how these cases can put retirement planning at risk.
"Couples who divorce after 65 often have more assets to divide and less time to recover financially," he said.
These scenarios have become increasingly common over the past few decades. The divorce rate for Americans 65 and older tripled between 1990 and 2021, even as it fell overall, according to research from the National Center for Family and Marriage Research at Bowling Green State University in Ohio.
Advisors who have helped guide client couples through these transitions say that extra care must be taken to ensure that both parties are on a solid footing in retirement.
Steven Crane, founder of Financial Legacy Builders in Dayton, Ohio, has encountered this situation many times. He said it's one of the tougher ones to navigate because there's little room for error.
"What looked like a solid retirement plan as a couple can quickly turn into two strained plans overnight," he said.
First, Crane said, he focuses on resetting expectations.
"In many cases, both individuals have to adjust what retirement looks like, whether that means working longer, spending less, or rethinking lifestyle decisions," he said.
Sandhya Gopal, an advisor at SpendItRight in Houston, is a Certified Divorce Financial Analyst who works with women on divorce settlement analysis. In these cases, she said, time is limited to rebuild lost wealth, with lifestyle changes to absorb and settlement decisions that are often irreversible.
"The portfolio that worked as a couple no longer works for an individual," she said. "So now the decisions are no longer purely financial; they also involve real emotional trade-offs."
Being intentional with asset division is often the next order of business, said Crane.
"Not all assets are equal," he said. "Tax treatment, liquidity and income generation all matter. A $1 million IRA is not the same as $1 million in a brokerage account, and if that's not understood, one side can end up in a much weaker position."
Income planning becomes especially critical, he added.
"We look closely at Social Security strategies, withdrawal sequencing and making sure each person has a sustainable income stream," he said. "This is also where mistakes can be costly, especially if decisions are rushed or emotionally driven."
Gopal said she advises clients to treat this as a reset of their financial life, not just an asset split.
"I focus on scenario modeling, [including] cash flow, tax-adjusted assets and what life actually looks like after, so they understand the trade-offs before making decisions," she said.
Earlier in the planning cycle, Crane said, advisors can help clients maintain visibility and involvement in their financial picture.
"I've seen situations where one spouse handled everything, and the other is left trying to figure it out under stress," he said. "Clear records, open communication and understanding how assets are structured can make a major difference if things change later on."
Building flexibility helps, said Gopal. This includes maintaining diversified assets and avoiding over-concentration in something like the family home, she said.
"That said, I understand this isn't easy," she said. "No one gets married expecting to get divorced."
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