Paths Through Divorce: Gray Divorce

Financial advisor and CDFA Kathy Costas of EP Wealth Advisors explains that “gray divorce” has surged in the past 5–10 years, with divorces among people 55+ growing fastest, driven by strong housing and financial markets, greater financial independence and inheritance for women, and longer, higher-quality life expectancy leading older couples to leave unhappy marriages. Kathy describes unique challenges for older or retired clients, including dividing fixed retirement income, handling the home as a major asset amid capital gains taxes and mortgage qualification limits, and considering options like 55+ communities or reverse mortgages. She also highlights health insurance strategies such as legal separation to keep employer coverage until Medicare, Social Security claiming rules for divorced spouses, required minimum distributions and tax/Medicare impacts, and preserving life and long-term care insurance. She emphasizes navigating divorce less destructively to maintain family relationships for later-life milestones.

00:00 Gray Divorce Explained

00:17 Why It’s Rising

01:11 Meet the Expert

01:32 Splitting Retirement Income

02:02 Home and Housing Options

02:48 Health Insurance Strategies

03:24 Social Security and Taxes

04:21 Insurance and Long Term Care

05:17 Divorce Without Destroying Family

EP WEALTH ADVISORS:

EP Wealth Advisors, LLC ("EP Wealth") is a leading independent registered investment adviser ("RIA") on a mission to provide clients with honest and objective advice through personalized financial planning, customized investment portfolios, and integrated tax and estate planning. Visit ⁠epwealth.com⁠ (http://epwealth.com/) to find out more.

🎙️ Podcast Production by Spoken Podcasts:⁠ ⁠⁠https://spokenpodcasts.com⁠