Heading for a “Gray Divorce”:
Here’s What You Should Know
The term “Gray Divorce” describes the recent rise in older couples – with the partners above 50 years of age – deciding to end their long-term marriages. In contrast, there are decreasing divorce rates among younger couples, which have dropped nearly 45% since 1990. Learn more here. So, why are more older couples deciding to call it quits, and how may a legal case look different when the parties involved have been together for decades?
Studies suggest that there are several reasons that older couples are getting divorced more now than they were thirty years ago. To start, life expectancy has increased – meaning people at age 50 may still live upwards of 25 years or more. This is a long time to spend in an unhealthy, unhappy marriage. Furthermore, as the number of women entering the workforce multiplies, more women have become financially independent. The question of financial dependency is no longer a block or hurdle to overcome in divorce, allowing many women to leave their unfulfilling marriages without risking their livelihoods. For other couples, it is difficult to acclimate to life with their spouses when they have entered a new chapter of life, such as “empty nesters” or retirement. As the children grow up and out or as work-life slows down, spouses may discover they no longer have much in common. Learn more here.
Issues arising during a Gray Divorce may be evaluated differently than if the divorce occurred earlier in life. For example, dividing property between spouses who have been married for several decades can be complicated. It is possible that the marriage acquired significant assets, like a house, multiple vehicles, and financial accounts. Dividing retirement accounts is of particular importance for older spouses. Since each retirement account has its own unique regulations, it is essential that someone going through a Gray Divorce understands the process and the potential tax consequences that result from the division of the various retirement accounts.
Another common family law matter during a Gray Divorce is Alimony. The amount and duration of Alimony will depend on the length of the marriage, the parties’ age and health, each party’s earning capacity, and the status of receiving retirement benefits. Spouses who have been out of the workforce for several years or decades may find it challenging to kickstart a career again or return to the workforce at all. This becomes particularly challenging if the stay-at-home spouse is not yet old enough to start collecting from retirement accounts or other sources of financial assistance. Of note in Gray Divorce is also the issue of health insurance and healthcare costs. This can be a major source of anxiety for older couples going through divorce since the costs of healthcare seem to constantly increase overnight. Losing coverage via a spouse could mean paying high premiums or reduced coverage.
Because of the unique challenges Gray Divorce presents, it is critical that anyone going through the divorce process later in life has thoughtful, experienced, and effective legal representation.
If you or someone you know is enduring a “Gray Divorce,” our Modern Legal Team is here to help.
Please note: these educational materials are based on North Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Written by: Theresa E. Viera
