Focus on Staying in the Black During a “Gray Divorce”
The number of “gray divorces” has doubled in the past 25 years, they are becoming more commonplace in our society today.
It is rising for many reasons, including the size of the baby boomer demographic, and this group not being concerned with the social stigma that divorce caused for their parents and grandparents back in the day.
One aspect of the “gray divorce” is that couples who decide at this age to separate often have intermingled financial environment that can be difficult to divide using the ligated-court divorce model. Further there is an emphasis on conserving financial resources and finding a process that that will not waste time and add stress to one’s life.
Here are some aspects that make a gray divorce unique:
- Health insurance coverage can often delay gray divorces due to the spouse being under the retirement age of 65
- Dividing assets is a significant issue when considering retirement funds, including pensions, 401ks, and death benefits
- Support can be considered through assets, social security benefits and other retirement accounts
- Marital home division creates unique situations that often need unconventional options to determine if one spouse can buy out the other
- Chronic illness must be considered the best course of action regarding beneficiaries, healthcare directives and retirement plans
Older couples divorcing have much more to consider financially because their timeline is different from others based on their age, experiences and estate.
It’s important to work with a team of experts versed in the collaborative divorce process to create a unique agreement that is amicable to both spouses, especially when they are older.
The Collaborative Practice of San Diego is a nonprofit, multi-disciplinary referral network of independent professionals of attorneys, mental health professionals and financial advisors working together to learn, practice, and promote Collaborative processes for problem solving and the peaceful resolution of family law issues in regard to co-parenting, with an eye toward preserving the emotional, as well as the financial assets of the family.
Contact us today to learn how we can help you and your spouse develop a divorce agreement that will accommodate your gray divorce amicablly.
Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.
