What is a “Gray Divorce”? Learn What it Means to Divorce When You Are Older
Posted on: October 6, 2023
“Gray divorce” is a term that has emerged to describe divorces among those who are aged 50 or above. While the concept of divorce might have been uncommon during the earlier years of this demographic, there’s been a paradigm shift in recent times.
According to data from Pew Research, the divorce rate for individuals aged 50 and over has witnessed a twofold increase since 1990. Interestingly, this age bracket now also comprises a significant portion of Generation X. Regardless of generational affiliation, there are certain unique factors and challenges to consider in a gray divorce.
Navigating Asset Division and Retirement Accounts
In California, a distinguishing factor in divorce proceedings is the equal division of marital assets due to its community property laws. This encompasses a variety of assets, from savings and personal belongings to investments and real estate.
However, in the context of gray divorce, the division of retirement accounts stands out as a predominant concern. Irrespective of whose name the account is under or who primarily contributed, retirement accounts like 401(k)s and IRAs can be divided equally if they were accrued or mingled during the marriage. Thus, the retirement savings you envisioned enjoying might be split in two.
The Continuous Nature of Spousal Support
Marriages that spanned a decade or more are considered long-term. In divorces arising from such unions, any spousal support granted often lacks a predefined termination date. This implies that unless there’s a remarriage or a demise of a spouse, the support obligations persist.
Yet, every divorce has its unique intricacies. For concerns about spousal support in a gray divorce, leaning on the expertise of an attorney is beneficial.
The Trade-offs of Retaining the Marital Home
While the sentimental value of a marital home might compel one spouse to retain it post-divorce, this usually comes at a cost. The desire to keep the house might entail forgoing a portion of retirement assets or settling for reduced spousal support.
However, one should be prudent. A house isn’t merely an asset but also a liability in terms of its maintenance, taxes, and potential mortgage. If the home’s upkeep is feasible and it holds genuine value for you, only then should it be a contention point.
Alternatively, some opt for liquidating the property and dividing the profits, a pragmatic approach in numerous gray divorce scenarios.
Tapping into Social Security Benefits
A lesser-known facet of gray divorce is the entitlement to Social Security benefits based on an ex-spouse’s record, provided certain conditions are met. Crucially, this entitlement doesn’t diminish the benefits your ex-spouse is eligible for, ensuring there’s no financial disadvantage to them.
Seeking Expert Legal Counsel
Embarking on a gray divorce journey can be intricate, necessitating experienced legal guidance. At Law Office of Michael L. Fell, our team of adept attorneys is well-versed in navigating the complexities of divorces, ensuring that our clients are poised for favorable outcomes. For further insights or assistance, reach out to us at (949) 585-9055 .
