How Women Can Turn a Gray Divorce Into a Financial Win

Getting divorced later in life can be a big financial blow, especially for women. But, as this financial adviser points out, it can also serve as a positive turning point for growth and independence.

By Stacy Francis, CFP®, CDFA®, CES™

published 7 May 2025

in Features

Three smiling older women walk arm in arm on the beach.

(Image credit: Getty Images)

Divorce is undoubtedly an emotional journey. But the financial ramifications are where many women face their most demanding challenges.

Recent studies emphasize that women often struggle to recover financially after divorce. This problem is even more pronounced in "gray divorces" (those involving individuals 50 and older).

In fact, while men 50 and over going through divorce typically see their standard of living drop by 21%, women have it much worse. Their living standards plummet 45%, according to a 2021 study reported in The Journals of Gerontology.

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Even for couples divorcing at younger ages, women also face significant setbacks. On average, a woman's standard of living drops by 27% post-divorce, while a man's increases by 10%, according to a study on gender differences in the consequences of divorce.

This article is written by CFP® Stacy Francis, a nationally recognized financial expert and president and CEO of Francis Financial Inc., which she founded more than 20 years ago. Stacy is also a Certified Divorce Financial Analyst®.

These statistics paint a stark picture of what has come to be known as the "divorce gap," a form of financial inequality that often goes unaddressed. While much has been discussed about the wage gap that exists between men and women, the divorce gap is now starting to gain recognition.

Bad news: Why divorce is worse for women financially

Several underlying factors contribute to the financial difficulties women face after divorce:

Women still make only 84 cents for every dollar earned by a man.
Women are also more likely to put their careers on hiatus to take on caregiving roles for children or even aging parents, leading to lower lifetime earnings. These responsibilities lead to extended periods of time away from their jobs, which can severely limit their ability to save for retirement, build a robust career or easily re-enter the workforce after divorce.
Another barrier is a lower level of financial literacy among women.

A UBS Investor Watch report highlighted that a significant number of women defer long-term financial decisions to their spouses. This reliance on their partner for financial decision-making can leave women vulnerable and ill-equipped to handle their finances after divorce.

According to the UBS study, only 23% of women take charge of long-term financial planning decisions, and when they suddenly find themselves navigating the financial complexities of divorce, financial decisions are much harder and more overwhelming.

Good news: Turn divorce into a financial turning point

That was the bad news. Now let’s look at some better news.

Divorce is an opportunity for women to reclaim their financial independence and build a stronger, more secure future.

While the emotional toll of divorce is undeniable, it forces women to take a hard look at their finances, reassess their long-term goals and make empowered decisions that will shape their next chapter.

This transition can feel overwhelming for many women, especially those not actively involved in financial decision-making during their marriage. However, with the correct planning, education and support, divorce can become a launchpad for financial strength rather than a crisis.

Women who take control of their financial futures can recover from the challenges of divorce and emerge with greater confidence, stability and a clear vision for the years ahead.

For those experiencing gray divorce, financial preparedness is even more critical. With a shorter time frame to rebuild wealth, women must take intentional, strategic steps to safeguard their economic independence.

Divorcing after age 50 makes it even more important to understand retirement assets, maximize income sources and ensure that financial decisions made today will sustain them for decades to come.

Taking proactive measures now can be the key to long-term security and peace of mind.

Empower yourself with financial knowledge

Knowledge is power.

Women who educate themselves about financial planning, wealth management and smart investing can make informed choices that set them up for success. Whether working with a trusted financial adviser, attending workshops or simply dedicating time to learning, financial literacy is one of a woman's most valuable tools.

You don't have to know everything today, but you do have to start. Take control, seek out knowledge and remember — you can manage and grow your wealth.

The more you learn, the more confident and secure your financial future will be.

Know your worth

A critical step in navigating divorce is understanding your financial situation. This means more than knowing your assets and liabilities. You must also have a clear grasp of your current income, expenses and what your financial needs will be post-divorce.

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Start by gathering key financial documents, such as tax returns, bank statements, brokerage accounts and retirement plans. These will give you the information needed to make informed decisions during the divorce settlement process.

Without this knowledge, it's impossible to negotiate a fair settlement or advocate for your long-term financial goals.

Having a clear picture of your income and spending habits will also be crucial when adjusting to life after divorce. You'll need a realistic budget that accounts for your new income and living expenses.

Build a financial future after divorce

Once the divorce is finalized, establishing an emergency fund is one of the best ways to protect your finances.

This fund should ideally cover three to six months' worth of living expenses, offering a cushion against unexpected costs and unforeseen expenses. It's essential to keep this money in a high-interest savings account so that the funds are able to grow and, ideally, outpace inflation.

Another key focus should be investing for the long term. Divorce often leaves women with fewer financial resources, making it even more critical to prioritize retirement savings through retirement accounts or brokerage accounts.

If the financial assets gained in the divorce settlement aren't enough to secure a comfortable retirement, women must actively save and invest more aggressively to close the gap.

Women who lack confidence in their ability to make smart investment decisions should consider seeking the help of a financial adviser with the CERTIFIED FINANCIAL PLANNER® certification. Be sure to also choose an adviser who is a fiduciary, meaning they are committed to serving your best interests.

This professional can guide you in making sound financial decisions, including developing a comprehensive financial plan that helps you meet your goals and feel secure about your future.

Reclaim control: Why financial independence matters

For many women, divorce signifies a fresh start, a chance to rewrite their life script and take control of their financial destiny. While it may initially feel overwhelming, navigating divorce will lead to financial empowerment.

By gaining financial literacy, seeking the advice of professionals and investing in your future, you can create a secure and fulfilling financial life.

Empowerment lies not just in surviving divorce but in transforming this experience into an opportunity for growth, independence and long-term success.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Stacy is a nationally recognized financial expert and the President and CEO of Francis Financial Inc., which she founded over 20 years ago. She is a Certified Financial Planner® (CFP®), Certified Divorce Financial Analyst® (CDFA®), as well as a Certified Estate and Trust Specialist (CES™), who provides advice to women going through transitions, such as divorce, widowhood and sudden wealth. She is also the founder of Savvy Ladies™, a nonprofit that has provided free personal finance education and resources to over 25,000 women.