Anthony Licciardello | June 23, 2026
Divorce
Later-life divorce is rising fast, and it carries a distinct risk: more equity, fewer years to recover it, and a home that often is the retirement plan.
Studies find household income can fall far more sharply for women after a grey divorce than for men — which makes dividing the home and retirement assets the most consequential step.
Often the kind choice and the sound one align: sell, divide, and right-size into two homes two budgets can actually sustain.
Divorce after a long marriage is its own experience, and the family home sits at the center of it. By the time a couple reaches their fifties or sixties, the house often holds most of their wealth and decades of their life — the rooms where children grew up, the garden planted season by season. Letting go of it is hard. But the financial reality of grey divorce is unforgiving in a way it isn't for younger couples: there are fewer working years left to rebuild whatever the split costs, and the home frequently doubles as the retirement nest egg two separate budgets must now fund. This guide looks at the house through that lens.
Divorce rate, age 65+ | Roughly tripled since 1990 |
Income drop after grey divorce | Studies find it falls far more for women than men |
Long-marriage alimony (NJ) | Open durational alimony commonly applies — a major recurring cost to plan around |
Maintenance (NY) | Formula-based up to the $241,000 payor cap (as of March 1, 2026), with longer advisory duration for long marriages |
Figures summarize widely reported research and are general, not predictions for any individual.
Factor | Keep it | Downsize |
|---|---|---|
Retirement equity | Locked in the home | Freed to fund retirement |
Monthly carry | High taxes, insurance, upkeep | Substantially lower |
Emotional pull | Strong — decades of memory | A fresh, lighter start |
Best when | One spouse can truly afford it alone | Two budgets must each be sustainable |
Right-sizing after a long marriage often means selling a larger home and buying two smaller ones — sometimes in different states. The Prodigy Team works both sides of the river, with a deep buyer pool for the family home and the local knowledge to help each spouse land somewhere sustainable and comfortable.
It refers to divorce among people age 50 and older. It has risen sharply over recent decades — the rate for those 65 and up has roughly tripled since 1990 — and tends to involve more equity but fewer remaining working years to rebuild it.
Only if you can comfortably afford it alone, including taxes, insurance, and upkeep on one income. For many, selling and downsizing into two sustainable homes better protects both spouses' retirement, since the home's equity is often part of the retirement plan.
Long marriages in New Jersey commonly involve open durational alimony, set by weighing statutory factors. In New York, maintenance is formula-based up to the payor income cap ($241,000 as of March 1, 2026). Either is a significant recurring cost to plan around, and your attorney should advise on your case.
Possibly. The exclusion is $500,000 for a married couple and $250,000 per person after divorce. A long-held home may have appreciated beyond that, leaving some gain taxable. Model the timing with a CPA before listing.
Usually the opposite. Downsizing can free trapped equity, cut monthly carrying costs, and lighten upkeep — often strengthening retirement security for both spouses rather than weakening it.
The Prodigy Team will help you understand what the home is worth, what it costs to keep, and how downsizing could strengthen both households — coordinating with your attorney and financial advisor.
Not financial, tax, or legal advice. The Prodigy Team and Anthony Licciardello are real estate professionals, not financial advisors, accountants, or attorneys. Retirement, alimony, maintenance, capital-gains, and asset-division decisions are complex, fact-specific, differ between New Jersey and New York, and change over time. The research figures cited are general and not predictions for any individual. Consult a qualified financial advisor, CPA, and licensed family-law attorney before acting.
Nothing here is legal advice or creates an attorney-client relationship. Figures reflect publicly reported information current as of mid-2026 and are subject to change.
Prodigy Real Estate is an innovative real estate company offering high-end video production, home valuation services, purchasing, and home sales. Serving New York and New Jersey.
