Divorce is hard for everyone, no matter their age or how long they have been married. However, couples over the age of 50 face unique challenges as being older divorcing adults. This trend – known as gray divorce – continues to increase each year.
If you’re wondering, what is a gray divorce and how it is different from regular divorce, along with the challenges that it entails, keep reading. We’ll also address the financial challenges and legal considerations for gray divorce and provide information for planning a fresh start.
What Is Gray Divorce and Why Is It Increasing?
Gray divorce is a fairly new term as well as a rising trend. Divorces among couples who are over 50 years old is nothing new; these separations have certainly happened in past decades. But it was rare for older couples to divorce back then. These days, gray divorces are increasing, particularly among baby boomers. The divorce rate of couples who are 65 years old and over has tripled from 1990 to 2021, and recent research shows that 1 in 4 divorces are now among people aged 65 and up.
There are a few reasons why this phenomenon between older adults continues to increase. First of all, it’s not because older couples are more prone to tumultuous relationships or excessive arguing. But rather, because society doesn’t view divorce as a shocking bombshell that’s meant to be undisclosed any longer. Instead of being seen as a stigma, divorce is now viewed as something that’s an ordinary part of life, no matter how long a couple has been together.
In addition to society’s growing tolerance of divorce, women are evolving as well, financially and emotionally. They are becoming more independent and self-reliant than ever, and if they are unhappy in their marriage – both, for the long-term and short-term – they are determined to get out of it instead of keeping the marriage intact.
Unique Financial Challenges in Gray Divorce
- The division of assets — One of the biggest financial challenges in gray divorces is determining how to fairly split shared assets. From real estate and small businesses to pensions, retirement accounts, and social security benefits, many older couples have already acquired a great deal of shared assets. Splitting properties, possessions, and wealth can get complicated during a divorce. As retirement approaches, the financial divisions can become even more complex.
- Healthcare — As couples age, their healthcare needs often become more pressing. Adequate coverage is more important than ever for those aged 50 and over. Increased medical expenses due to health issues means that insurance options need to be evaluated carefully during a divorce. It’s possible that one spouse may lose health insurance coverage, primarily if their partner’s employer insurance plan covers them both. Obtaining separate healthcare plans can be extremely expensive.
- Housing — Splits between older married couples usually involve the family home. It can be incredibly difficult to let go of the house they’ve shared and potentially raised a family in. Determining how to divide a home during a divorce takes serious consideration. Also, finding affordable, accessible housing can be particularly difficult, especially in a weak housing market.
Legal Considerations for Gray Divorce
- Estate planning – Gray divorces can greatly affect long-term plans. It’s crucial that both partners revise/update their wills, trust, and beneficiary designations to reflect their new marital status. This prevents ex-spouses from receiving any money or property, and also prevents them from being named Power of Attorney or Executor of the Estate.
- Taxes – Divorce can change your tax situation — instead of filing jointly, both parties are suddenly single tax filers, which can change tax brackets. This could have a significant impact on IRS and state tax obligations.
- Debt – The allocation of debts is another legal consideration for those going through a gray divorce. The ability to pay back the debts is more important than which party is legally responsible for the debts – unless the debt was incurred before the couple got married.
- Child custody – With today’s innovative medical advancements in conception, it is entirely possible that an older couple may have children together who are younger than 18 years old. In these cases, they must carefully make child custody and visitation decisions.
Planning for a Fresh Start After Divorce
Couples who are going through a gray divorce will see their lives change dramatically. But, this doesn’t particularly mean that they cannot rebuild their lives. New friends, different social circles, and even new partners can be sought out. It is possible to enjoy a fresh start, no matter how long two people have been married.
Gray divorce can be difficult, but it can be possible as well. Securing an experienced divorce attorney is recommended during this challenging time in an older person’s life. Zelenitz, Shapiro & D’Agostino are experts in New York state divorce law, and can help you achieve the best possible outcome.
