Gray Divorce Financial Considerations

Divorce in your 50’s and beyond is commonly referred to as gray divorce. As an older couple, your assets and debts look different than that of a couple divorcing in their 20’s or early 30’s. Typically there are more assets. That makes the gray divorce financial considerations different than that of a divorce of a younger couple.

Retirement Accounts

For those couples who are now in their 50’s and 60’s and chose the route of the husband working while the wife raised the children have a serious financial disparity. This often meant a break of anywhere from five to 20 years of the woman working outside the home. As such, her retirement account is likely significantly less than the husband’s.

Typically, the retirement accounts are fairly divided based on the length of marriage. Funds in the accounts prior to marriage can be considered a non-marital asset. This is one of the biggest gray divorce financial considerations you and your spouse should talk about going into your divorce. One or both of you may need to delay retirement. Your divorce attorney will help with your Qualified Domestic Relations Order (QDRO) regarding retirement account division. Keep in mind that Social Security benefits are not divided.

Alimony and Life Insurance

Alimony is not unheard of in a gray divorce. It is most often rehabilitative alimony in place to allow one party to continue in the lifestyle they have become accustom to while they re-establish themselves in their career. If you are ordered to pay alimony, you will likely be required to have a life insurance policy for as long as you are required to pay alimony. Premiums for those over 50 can be cost prohibitive making it another one of your gray divorce financial considerations.

Inheritance

Many of us over 50 have received some sort of inheritance from a deceased relative. Depending on what you inherited and where the funds are, all or part of your inheritance may be a non-marital asset. This is where an experienced gray divorce attorney is particularly helpful.

Try Mediation or Collaboration for Your Divorce

Both processes can reduce the cost of your divorce and generally are less stressful. With mediation or collaboration, both parties have more control and privacy regarding your divorce settlement. Wagstaff & Pitelis works with individuals and couples looking to divorce at any age and through any process including litigation, mediation and collaboration. Call us today at (727) 584-8182 or fill out our contact form for your initial consultation.