Ending a marriage after 50 brings unique challenges that younger couples rarely face. While younger divorcees have decades to rebuild finances and adjust their health plans, you might not have that same luxury.
Essentially, gray divorce can dramatically affect your access to healthcare, insurance coverage and the long-term care plans you’ve established over decades.
Health insurance problems after a gray divorce
For many couples over 50, keeping health insurance becomes one of the biggest worries during divorce. If you used your spouse’s work health insurance, you now face tough choices about staying covered.
Health insurance options you may consider after a late-life divorce are:
- COBRA coverage from your ex-spouse’s plan
- Purchasing individual health insurance
- Medicare coverage if you’re 65 or older
- Employer-sponsored insurance if you return to work
- Finding coverage through groups or associations you belong to
COBRA coverage is a great option but it comes with strict rules and restrictions. In particular, you may only use it up to 36 months after the split.
The best choice depends on your age, health needs and money situation. Many older people divorcing find themselves caught in a coverage gap, especially those not yet eligible for Medicare but without affordable alternatives.
Protect long-term care and retirement health funds
Gray divorce often divides resources you planned to use for future medical and long-term care needs. Your retirement accounts, pensions and investments that would cover healthcare expenses now face division. This potentially leaves you with half the resources but the same health concerns.
During divorce talks, focus on protecting money set aside for healthcare. You might trade other assets to keep medical savings accounts or insurance policies. Think about how your divorce settlement affects Medicare costs, which go up if you have higher income.
You may need to change your long-term care insurance or get new policies that fit your single life and new money situation.
Plan for your health security after divorce
Protecting your health needs starts with open communication. Discuss healthcare concerns with both your spouse and attorney during divorce proceedings.
Consulting legal and financial professionals who specialize in post-divorce healthcare planning may help you develop strategies that help you stay independent while protecting your health for years to come.
