Gray Divorce

What is a “gray divorce?”  When couples over the age of 50 divorce, that is classified as a “gray divorce.” This is a growing trend that can have significant legal and financial consequences.  At CBGood Law, we understand that gray divorce is not just the dissolution of a marriage, it's a legal and financial restructuring of life after decades of shared history. If you are considering divorcing later in life, understanding the distinct issues involved is essential to successfully moving on, both financially and emotionally.

Gray divorce rates have doubled since the 1990s.  Whether this trend is driven by empty nest syndrome, differing retirement plans, or simply growing apart, separation later in life can come with complexities that differ from divorces occurring earlier in life.  Below are just a few examples.

Division of Assets:

Older couples often face the need to divide substantial shared assets, including real estate investments, retirement accounts and pensions. It is highly recommended that you consult with a financial advisor to guide you on how best to uncouple your combined assets.

Retirement accounts, such as 401(k)s, IRAs and pensions, often represent the largest component of a couple’s marital assets. In divorce, these assets are subject to equitable division. “Equitable” is defined as a “fair”, which may or may not mean an equal division of the assets.  The Court considers a multitude of factors in determining a fair division of a couple’s assets.  These factors can be found at M.G.L. c. 208, sec. 34.  This division can directly impact one’s standard of living post divorce and one’s ability to retire on time.

Spousal Support:

After decades of marriage, spousal support (alimony) may be awarded to the lower-earning spouse.  The amount is discretionary and is a subjective determination made by a judge after considering the length of the marriage, the “lifestyle” of the parties during marriage, the “need” of the recipient spouse and the payor spouse’s “ability to pay.” The duration of alimony is dependent upon the length of the marriage and the age of the payor spouse.  Under the current alimony statute, the duration of the alimony is based upon a percentage of the length of the marriage for marriages less than 20 years; for marriages over 20 years, the duration is unlimited, except that the obligation to pay alimony ends upon the payor attaining full retirement age, the recipient spouse either cohabitating with a romantic partner for three months or more, the recipient spouse remarrying. See M.G.L. c. 208 sec. 49.  The potential time limitation of alimony can directly impact a recipient spouse’s decisions regarding their future housing options and their ability to meet their living expenses.

Health Insurance and Long-Term Care Planning:

When one spouse is dependent on the other’s health insurance, divorce can leave them vulnerable, especially if they’re not yet eligible for Medicare.  It is important to determine whether a spouse may remain on their spouse’s health insurance post divorce.  It is best to refer to the Employee Benefits handbook regarding this issue.

Estate Planning Revisions:

Divorce, the legal termination of a marriage, automatically affects one’s estate plan.  It is essential that one updates their will, trust and named beneficiaries on life insurance policies and retirement accounts to reflect one’s post divorce intentions. 

At CBGood Law, we can assist in guiding you through the various legal obstacles encountered in the divorce process, including those special considerations in a gray divorce.  Contact our office today to schedule a free, confidential consultation.