- Nicole Sodama is the founder of a family and separation law firm in Charlotte, North Carolina.
- She states that a ‘gray divorce’ may be due to factors such as long life expectancy and financial independence.
- Older couples should consider retirement benefits and division of marital property in the process of separation.
- See more stories on Insider’s business page.
“Gray divorce,” also known as “silver splitter” or “diamond divorce,” is a term used to refer to the growing trend of late-life divorces. The term first became mainstream in 2004, when AARP published a study on divorce on “Midlife and Beyond”, and is typically used to describe adults 50 or older who are undergoing separation. Huh.
In 2015, every 10 out of 1,000 couples 50 and older divorced, double the rate of their divorce in 1990. And for people over 65, this increase was even greater – it had nearly tripled in 25 years. In fact, while the overall rate of divorce has steadily declined, the divorce rate of people over 50 has been increasing since then.
Statistically, Gray is divorced and still growing, not in the United States. Canada, Japan, Australia, India and the United Kingdom have also recorded growth over the past decade. While discussion online has become more prevalent in recent years, it is a conversation that many divorce attorneys have been familiar with for over two decades.
The rise of gray divorces can potentially be attributed to various things: people living longer, both spouses working and therefore becoming more financially independent, and the stigma associated with divorce Have changed a lot. If you are going through a separation later in life, here is what you should know.
The Difference Between Going Through a Gray Divorce and Getting a Divorce When You’re Small
There may be some unique issues that you have to address at any age in the form of equitable distribution and alimony in addition to the standard concerns of divorce. Some of the problems associated with “gray divorces” include the division of retirement benefits, confusion over beneficiaries, more complex marital assets to divide, health insurance and medical benefits, overall health care expenses, and potentially more than one support obligation. Additionally, a financially dependent spouse may feel that they need more support, given a lower likelihood of starting a career late in life, and a financially supportive spouse support May be concerned about their ability to maintain payment as they slow down or retire.
The need for retirement benefits becomes more important when you divorce later in life because people have time to “mitigate” any losses for divorce. Understanding what benefits are available, and how they can be delivered, is paramount as you plan for a different future.
For example, a Qualified Domestic Relations Order or QDRO, is a mechanism by which certain retirement plans can be divided. QDROs are often, but not always, required depending on the type of retirement plan split. Although you might expect that QDROs will show up in any divorce, it is very likely to occur in gray divorces, where retirement accounts are more important.
For many gray divorces, custody is often not relevant to the discussion because the parties’ children are over 18 years of age. However, there may still be issues to address to avoid the inclusion of adult children and grandchildren.
Adult children may be dragged into end-of-life divorces and be asked to live with one parent or the other, and this can harm the family unit (which is often why unhappy couples leave their children Let’s wait until they grow up. UP). There are a number of ways that individuals can address these concerns, including estate planning and postcontinent agreements, which can help meet future expectations not only for the individual, but also for their family.
Postoperative agreements are signed After the One can address issues such as the date of marriage, and debts, inheritance, and any other assets such as a couple’s ownership – such as a house – in the event of a separation, rather than before. Often, couples who realize their marriage use volatile agreements, as they can help deflect some difficult conversations about finances so that the couple can regroup their energy on their relationship.
Your estate plan typically includes a will, medical and financial powers of attorney, and an advanced care directive, all of which legally protect your assets and your wishes for your family after you pass away.
Looking ahead, you also have to consider a new partnership, should you decide to marry again. Couples will need to address the impact of divorce on their children from prior relationships as well as future relationships. For example, you may need to consider how marital property may be affected or challenged if you remarry – any impact on retirement, social security and pensions, and update and maintain estate planning documents would be required. Maybe instead of a post-modern agreement, a pre-marriage or premarital agreement can best serve the future interests of the family.
The preneptial agreement is a legal document signed by both individuals before this they are getting married. Like postnautial agreements, pronouns can address, but are not limited to, a wide range of topics that accrue in the event of a split and on any condition with respect to receiving alimony.
how to proceed
For those going through a divorce later in life, be sure to build a strong foundation and clear expectations about what you want to see in your next chapter. Identify a trusted and knowledgeable divorce lawyer, estate planning attorney, and financial advisor. Use litigation as a last resort, and consider an alternative dispute resolution method, such as mediation, which can usually keep costs down, take less time, and be less stressful for all parties involved. Can.
Nicole H. The founder and managing head of Sodama is Sodom law, Located in Charlotte, NC, with additional locations in Central County, NC and York County, SC.
This story was originally published on Insider on February 10, 2020.