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“I Don’t Own a Home”: I’m 62, Unemployed, Have $1.5 Million — Can I Afford to Divorce My Husband?

It’s a tough question, but one I hear more often than you might think. Especially from women in their early 60s who have spent years building a nest egg, putting their own careers on hold, and now face retirement—and sometimes, a divorce. It’s a crossroads nobody wants but many find themselves walking toward anyway.

So, let’s get real: $1.5 million is nothing to sneeze at. But combine that with being unemployed, not owning a home, and the added stress (and cost!) of splitting up, and things quickly get complicated.

The Big Deal About Owning a Home

Owning a home in retirement? Huge advantage. It’s not just the value locked up in your house—it’s the stability that comes with it. No mortgage means fewer fixed expenses, plus you’ve got options if money gets tight: downsizing, renting out a room, or even taking a reverse mortgage.

If you’re renting, though, your housing costs are constantly at the mercy of the market. And that can be brutal. Without a home, your $1.5 million has to stretch not only for groceries and fun, but rent too—which can easily be $2,000 to $3,000 a month or more depending on where you live. Over 20 years, that adds up to over half a million dollars just in rent. Yikes.

Dividing Assets — More Than Just Numbers

“Gray divorce” (divorce after 60) is definitely on the rise, but it’s rarely simple. Even if that $1.5 million is 100% yours, legal fees can chew through tens of thousands. If it’s joint, expect your slice to shrink. Throw in pensions, Social Security benefits, and other assets, and the math gets messy.

And here’s the kicker—most people underestimate how long and stressful the process can be. I’ve seen clients get blindsided by delays in paperwork for splitting retirement accounts, which can drag on for months or even years. Plus, taxes can sneak up and take a chunk out of what you thought was yours.

Withdrawal Rates: What’s Realistic?

We’ve all heard the “4% rule,” right? Take 4% annually from your savings, and your money should last 30 years. On $1.5 million, that’s about $60,000 pre-tax per year.

But honestly, that’s a bit optimistic these days. Markets are unpredictable, interest rates are low, and healthcare keeps getting more expensive. Many experts now suggest a safer withdrawal rate closer to 3–3.5%. That means $45,000 to $52,500 a year.

Now, imagine rent eats up $30,000 of that annually ($2,500/month). You’re left with $15,000 to $22,500 for everything else—food, utilities, meds, travel, car repairs, and all those little surprises life throws at you. It’s doable, but it definitely calls for budgeting like a pro.

Social Security: Helpful, But Don’t Count On It

At 62, you can start claiming Social Security, assuming you have enough work credits. But starting early means smaller monthly checks. If your ex earned more, you might qualify for spousal benefits—even after divorce—if the marriage lasted 10+ years. Just remember, those benefits only kick in if you stay single and your ex is over 62.

In reality, Social Security usually covers just the basics. I’ve seen people get a reality check when their benefits came in under $2,000 a month. It helps, but it won’t cover rent and all the other expenses alone.

Healthcare: The Cost You Can’t Ignore

If you’re under 65 and unemployed, you’re probably paying for private health insurance. Medicare won’t start for a few years, and premiums can be $600 to $1,000+ a month, especially if you don’t qualify for subsidies.

Even after Medicare kicks in, there are premiums, copays, deductibles, and unexpected medical bills. I’ve seen people watch their savings disappear fast just to cover health costs. It’s one of the biggest financial “elephants in the room” many retirees forget to plan for.

Inflation and Longevity: The Long Game

Here’s the hard truth: If you’re 62 now, chances are good you’ll live into your 80s or beyond. That means 20+ years of drawing from your nest egg.

Inflation is a sneaky beast, especially when it comes to healthcare and housing. Rent tends to rise faster than general inflation, and without a fixed mortgage, you’re exposed. This is where many retirees get squeezed — it’s less about the size of your savings today, and more about how far it will stretch in the years to come.

When $1.5 Million Can Work — and When It Can’t

If you live somewhere affordable, stay healthy, and keep your lifestyle simple, that $1.5 million can absolutely work—even without a home. You might need to cut back on luxuries and travel, but some find that freedom empowering.

But if you’re in a pricey city, have health issues, or want to keep the lifestyle you’ve grown used to, it’s a much tougher hill to climb. Housing costs and legal fees can drain your cushion faster than expected, especially if divorce drags on.

What You Can Do Next

Start with a clear, honest budget. Write down what you spend now—and what you expect to spend once divorced. Don’t forget items like health insurance, taxes on withdrawals, and emergency expenses. It’s better to overestimate than get caught off guard.

Then, talk to a fee-only financial planner who has experience with divorce and retirement. A good planner can run the numbers, show you different scenarios, and help you understand the risks and opportunities ahead.

Timing matters, too. Sometimes waiting until 65 to hit Medicare or delaying Social Security until full retirement age can make a big difference. Also, when negotiating a divorce settlement, see if you can secure housing support—maybe cash for a down payment or a share of a pension.

The Takeaway

Divorcing in your 60s isn’t just about emotions—it’s a huge financial decision with long-term impact. $1.5 million is a strong start, but it’s not a magic number. Housing, health, and inflation can throw curveballs.

I’ve seen it work, but only when people face the reality head-on, plan carefully, and stay flexible. Be ready to make trade-offs. If independence and peace of mind are worth it to you, the effort can pay off. Just keep your eyes open, and be prepared for the bumps along the way—because in retirement, they’re never far behind.

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