When divorcing later in life, there are multiple gray divorce considerations that could affect the process, including financial complications, complex asset division, family dynamics, and health and care concerns.
For assistance with this process and make things easier for all involved, call Silberman Law Group at 312-593-0075 and consult with a Northbrook divorce lawyer.
What Unique Issues Should You Consider in a Gray Divorce?
Although the overall divorce rate has decreased in the last few decades, the gray divorce rate reached 15% in a recent year, triple what it was in the 1990s. There are several possible late-in-life divorce issues that could impact couples and their families, such as:
Financial Complications
One of the main gray divorce considerations pertains to finances, as couples in these divorces tend to have developed more complex finances over many years. As a result, both parties could suffer from the sudden financial instability, particularly regarding healthcare and housing.
Complex Asset Division
Older couples often have accumulated many assets, including joint assets, that can be difficult to distribute. This can especially be the case with marital homes that couples have spent decades living in and find it difficult to part with.
Health and Care
As individuals age, health will become an even more important factor in the divorce process, particularly if long-term care comes into play. For instance, one spouse may receive care from the other, and the divorce could put an end to this care.
Emotional Struggles
Individuals going through divorce later in life also often struggle emotionally with the process, feeling a sense of loss or failure. Part of the emotional challenges could also come from severed friendships and other relationships that developed throughout the marriage, and dating can be another challenge if individuals want to get involved in a new romantic relationship.
How Does Divorce Later in Life Affect Retirement and Financial Planning?
Getting a legal separation or divorce often comes with more financial ramifications for older couples than their younger counterparts. Throughout the divorce process, couples may wind up dividing retirement accounts, including their 401(k)s, pensions, and IRAs. Also, individuals in a gray divorce may need to wait longer before they can retire, as it could take longer to rebuild savings after the divorce, possibly requiring one or both parties to work at least part-time to replenish them.
Financial planning can become challenging as divorcing spouses may need to reassess their entire financial situation going into the divorce. For instance, they may need to adjust their budgets and lifestyle expectations to maintain their available budget and facilitate financial rebuilding.
To help with these aspects, it may benefit one or both parties to work with financial planners and a divorce lawyer with experience handling finances and retirement plans.
What Challenges Do Older Couples Face When Dividing Assets in a Gray Divorce?
When going through a gray divorce, spouses could face multiple challenges when it comes to asset division. In addition to assets like retirement accounts, real estate, and pension plans, individuals may identify various hidden assets, which include:
- Undisclosed accounts, like offshore or savings accounts
- Falsified records
- Transferred assets, like loans and gifts
- Underreported cash income from a business
- Undervalued property, such as collectibles and art
- Delayed bonuses, stock options, or other compensation
An Illinois divorce attorney could also help determine if these or other assets are involved in the divorce, helping ensure that all assets are distributed fairly among both parties.
Consult an Experienced Divorce Attorney in Illinois
Getting a divorce later in life can be complex, and the process is often difficult to navigate, which is why it’s often best to work with a divorce attorney with plenty of experience. An attorney can help identify and fairly distribute all assets while keeping the process smooth throughout.
The right lawyer will be able to develop effective divorce strategies based on your specific needs and expectations, giving you the representation you need to avoid the various complications that could arise.
At Silberman Law Group, we have worked with couples to help each spouse reach a favorable outcome, including situations involving gray divorce proceedings. Contact us today to connect with one of our attorneys in Northbrook and find out how we might help you in an initial consultation.
FAQs
What makes a gray divorce different from a typical divorce?
There are key differences between gray divorces and divorces among younger couples, including a focus on financial aspects over child custody, more complex asset division, and emotional challenges due to the length of the relationship and the ensuing changes to relationships and lifestyles after decades of marriage.
How is retirement income divided in a gray divorce?
In late-in-life divorce, 401(k)s, IRAs, and pensions that couples accumulate during a marriage typically count as marital property, leading courts to divide them either equitably or 50/50, depending on the state. It is also possible to evenly divide Social Security benefits.
Can spousal maintenance be awarded in a late-in-life divorce?
In Illinois, individuals in long-term marriages of over 20 years can normally receive indefinite spousal maintenance, based on both parties’ health, earning potential, and standard of living at the time of the divorce.
