Marriage ending later in life? Get tips for going through "gray divorce"

April 13, 2013

A recent study conducted by the National Center for Family & Marriage Research found that among individuals who got divorced in 2009, one in four was over the age of 50. This rate has more than doubled since 1990, when it was one in ten, and with the U.S. population aging, the trend is not expected to change anytime soon.

Getting divorced is never easy, and if you are over the age of 50, divorce can come with some special challenges. Yet, with an experienced family law attorney by your side and a little knowhow under your belt, you can make the process as painless as possible.

Should plan for financial challenges, address administrative concerns

One of the biggest challenges of gray divorce is that the financial stakes are typically much higher than for couples divorcing at a younger age. Important decisions will have to be made about splitting large retirement accounts and other assets that have accumulated value over the years. What's more, older individuals are closer to retirement, and thus have less time to recover financially after a divorce. The consequences of any mistake in the divorce can be very costly.

So what does this mean? When going through a divorce later in life, you must carefully take into account the long-term effects of your decisions. For example, you may wish to pursue a greater portion of the marital estate (all the assets owned by you and your spouse) in lieu of high alimony/spousal support payments because of the concern that the alimony payer is older and could pass away in the timeframe during which alimony is to be paid.

Yet, it is not always possible to secure a large interest out of a marital estate, as it may not contain enough value to see you through to retirement. In this case, it is essential that alimony be secured by life insurance so that if the payer dies, the recipient can get the remaining amount of spousal support owed through the life insurance proceeds.

Speaking of finances, it is not uncommon in many long-term marriages for one spouse to handle most or all of the household's finances. When the marriage ends, the other spouse will have to budget, pay bills and invest assets. Advice from a professional financial planner may be a good idea.

Another important thing to remember after a gray divorce is to pay attention to designations on important documents that usually come into play later in life. Under Florida law, upon dissolution of marriage, the designation of an ex-spouse as beneficiary on life insurance policies, employee benefit plans, individual IRAs and certain other benefit policies is automatically invalidated (if you wish for your ex-spouse to remain beneficiary, you will have to make that designation after the divorce). However, there are other instruments -- financial powers of attorney, health care proxies and living wills, for example -- that may require more direct attention if you do not want your ex making decisions on your behalf should you become incapacitated. Older individuals should revisit and update all important documents after divorce.

Talk to a Florida divorce attorney

If your marriage is ending, you in an especially vulnerable position if you are over the age of 50. But, with careful planning and the right legal help, you can overcome the obstacles presented by a gray divorce and emerge from your marriage in a strong position. Talk to an experienced Florida divorce attorney today about your case.

Article provided by Vari & Associates, L.L.C
Visit us at www.miamiflfamilylawyers.com/