A Gray Area: Navigating the Reality of “Gray Divorce”

The decision to end a marriage after many years is never an easy one. After decades together, some couples simply grow apart or struggle with bouts of infidelity. There are many reasons why couples over 50 choose to divorce, and things can be extra complicated in this type of divorce, also known as “gray divorce.”
 
Financial Adjustment Gray divorce has become more common over the last 20 years. When couples split during this phase of their life (peak career/pre-retirement), it can be a financial shock. After decades of marriage, it’s likely they rely heavily on one another in terms financial stability. It’s even more challenging if one spouse handled all the bills and expenses.
 
Income and Support In some cases, partners are not equally able to support themselves. A great example is one spouse who focuses on career while the other stays at home to raise their children. Following divorce, the stay-at-home parent will be at a severe disadvantage. This disparity will come into play during court proceedings. The court will determine how to divide the couple’s assets, including savings and retirement accounts. The court will split the assets equitably — or roughly 50/50. That said, one spouse may also be required to pay alimony.
 
Retirement During divorce, the couple will need to consider their respective retirement funding sources and how the divorce will impact them. Keep in mind that retirement accounts are part of equitable division and the court may split the accounts or funds within those accounts. Much of the time, each person must adapt to a retirement plan which lacks the funding it once did. Additionally, a divorce may even postpone retirement, especially if the funds are no longer enough to make retirement possible long term.
 
These are unique challenges that can complicate divorce. Call us today if you have questions about gray divorces or need help navigating these complex issues.