Four matters to consider in a Gray Divorce.
Are you over 50? Going through a divorce? This legal guide will help you understand some of the issues you could face in your divorce.
Retirement benefitsYounger couples who choose divorce likely have little interest in retirement plans, as any such plans would be minimal in value. For older couples getting divorced, retirement plan benefits can represent the most complex issue in their divorce. In some instances, intentionally postponing retirement until the gray divorce finalizes may be helpful.
Asset and debt divisionAs it is complex to divide retirement benefits, it can be challenging to fairly divide the assets and debts of a divorcing couple that has been together for decades, since more assets are likely to be considered marital property (or community property). In general, the more assets subject to property division, the more complicated the process will be. This can include investments, business interests, homes and real estate, private practices, retirement accounts, pensions, and debts.
Life and health insuranceDivorcing couples over the age of 50 will need to consider life insurance policies. Additionally, health insurance or long-term care insurance may no longer be affordable for the spouse who earned less income during marriage. Reobtaining insurance after a gray divorce can be difficult.
CompetencyFamily law matters cannot be concluded confidently if there is reason to believe someone is incompetent, or unable to understand his or her own decisions and best interests. This concern can be exacerbated in gray divorce if a spouse may be suffering from cognitive decline.