Gray Divorce? More and more people over 50 are getting divorced in the United States, a trend known as “gray divorce.” By the end of 2017, there were 26,653 active divorce cases in Maricopa County alone. Baby Boomers, in particular, are experiencing a surge in divorces, possibly influenced by the rise of social media platforms like Facebook. The term “gray divorce” specifically refers to those over 50 who are part of this growing trend.
Whether you’ve been married for a short or long time, getting divorced at 50 or later comes with unique challenges. Issues like healthcare, social security, changing incomes, and expenses are different compared to divorcing at a younger age. Additionally, there’s the potential impact on adult children who might take sides or blame one parent for the marriage’s failures.
Moshier Law is here to help with Gray Divorce Consultation in Phoenix, Arizona. Choose us to navigate the complexities and challenges associated with divorcing later in life.
If you and your partner are both older than 50 and thinking about getting a divorce, your part of what they call a ‘gray divorce.’ It might sound a bit funny, like a 36-year-old having a ‘geriatric pregnancy.’ Increasingly older couples are getting divorced because people are living longer, staying healthier, and have more choices now. The legal part of getting a divorce stays the same, but there are three diverse kinds of gray divorces:
Each person has significant emotion attached to this higher-stakes process. You have likely accumulated savings, assets, and maybe some well-strategized debts. There are some gray divorcees who maintain a mortgage, despite being able to afford to hold equity positions so that they can maintain a higher credit score if they want to purchase an investment.
The legal process hasn’t changed for your divorce, but every word of your dissolution documents matters that much more, because more is at stake. Also, more emotion is attached to each decision. After all, you’ve had some opportunities to develop some strong memories, opinions and even some resentments.
The emotional part of a gray divorce is so heightened because many people carry past hurts from one season of life into the next. This is true whether you are carrying hurts from earlier in this marriage, or hurts from a prior marriage, prior relationship or prior member of your immediate family. Everything feels stronger, and matters more. And your time is that much more precious now. It’s not that you have so little of it, but you have made the mistakes you don’t want to repeat.You want to safeguard your assets and debts from the other person, and you recognize the threat that third party creditors can pose to your holdings as well. You have to be concerned about unique financial issues that don’t likely affect people in the under-40 population, like these:
Borrowing against your retirement funds may be most advised when you are in a lower tax bracket at the time you incur a penalty. If you are now single at the time of this penalty, your tax implications can change. You could owe taxes on retirement accounts if they are transferred between you and your former spouse. This firm maintains close, dependable relationships with financial professionals to structure your divorce decree so that you incur the least disadvantageous consequences. But we always recommend you speak with your financial advisor, CPA or tax attorney to ensure that every step you take, or plan to take, will meet the goal of reducing your penalty.
Borrowing against your retirement funds may be most advised when you are in a lower tax bracket at the time you incur a penalty. If you are now single at the time of this penalty, your tax implications can change. You could owe taxes on retirement accounts if they are transferred between you and your former spouse. This firm maintains close, dependable relationships with financial professionals to structure your divorce decree so that you incur the least disadvantageous consequences. But we always recommend you speak with your financial advisor, CPA or tax attorney to ensure that every step you take, or plan to take, will meet the goal of reducing your penalty.
If you’re both over 50, and you’re divorcing, you belong to the “gray divorce” population. We realize this is an irony for some readers, much like a 36 year old “geriatric pregnancy.” The gray divorce is becoming more common in part because so many people are living longer, staying healthier, and many people in the gray divorce population are afforded more options than their predecessors. The divorce itself doesn’t change in the legal sense, but there are three divorces:
Other firms may tell you to maintain perspective, but we know that’s really hard to do. Unlike a lot of law firms, we offer collaborative law for gray divorcees. We also offer a roster of reliable, independent but like-minded professionals who will offer collaborative law to your spouse. Divorce is ultimately a financial transaction, but emotions cloud it. Keeping a cool head may be too much to ask. You may have some real hurts and challenges, and you want to air those grievances. Collaborative law allows you that opportunity. It also enables the two of you to create a uniform approach to telling your friends, your children, and your family members about your life change. You may lose each other as a spouse, but you can still be family. I mean this – and I know many people who actually successfully maintain these relationships.
Obtain your spouse’s credit report, and be sure the debt in their name is your debt too. Arizona community property laws make every debt a community debt, but some people bring old debt into a marriage. There is a list of important documents you need to collect for your divorce. Contact us and we’ll give you the list.
Even if your spouse owns the retirement account, include it. You might get some money from it as part of a deal. Think about what’s financially best for you. You can ask for all the money at once or get paid over time. If your spouse doesn’t follow court orders, getting a lump sum could be a good idea. Consider keeping the house—your spouse could live there and pay rent, and you get it when they pass away. If you share retirement accounts, you might need a QDRO (Qualified Domestic Relations Order). Dealing with government or other pensions is tricky, so make sure the right lawyer handles it— it might not be a QDRO!
If you have adult children who you both planned to gift, it may make sense to create a trust now to gift them, or structure a payout of the trust interest, to your children to avoid probate as you both age and to avoid third party greed. You will both move on, and third parties could become opportunistic if you have significant assets. Are you not able or willing to gift your kids now? Tell them how their inheritance could change.
Medical issues present as we become older. Health insurance is important to avoid creditors attaching to your assets. Plan for your needs as you age, require assistance and medical care. Sometimes people consider a legal separation rather than a divorce due to health insurance expenses, and the risk of a lifetime spousal maintenance award that is associated with the rising costs of health care. Sometimes, health care providers will allow a legally separated couple to remain insured, but this is an individual determination on a case-by-case basis.
Were you married longer than 10 years? Is your spouse over 62? You can receive spousal benefits if you are unmarried. A divorce can really threaten your financial security. Consider every out of court option. This isn’t the time to waste your life on lawyer’s fees and court appearances. However, if you must litigate your divorce, we have a tremendous experience structuring spousal maintenance positions in gray divorces. Do you want to speak with a lawyer about your divorce? Call us at 480-999-0800.
11260 N Tatum Blvd, Phoenix, AZ 85028, USA
480-999-0800
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