What You Need to Know When Navigating a Gray Divorce

June 10, 2024  |  Jason C. Brown

Divorces among couples over the age of 50 are on the rise across the United States. These “gray divorces” come with special challenges that younger divorcees may not face, such as planning for retirement with a more limited income. At Barna, Guzy & Steffen, we understand the emotional, legal, and financial complexities involved in gray divorce, and we’re here to help you through the process. In the following blog, we’ve gathered important information that you should know if you are considering or navigating a divorce later in life.

Spousal Maintenance

Also known as alimony, spousal maintenance is financial support that one spouse may be required to pay to the other following a divorce. The goal is to maintain the other spouse’s standard of living, and it is often awarded to spouses who gave up careers to raise children. It is generally preferable that the separating couple makes a decision regarding alimony themselves. If they cannot come to an agreement, a judge will decide how much alimony a spouse must pay and for how long.

The judge will award alimony based on several factors, including each spouse’s financial needs and abilities, the length of the marriage, and career sacrifices made by the spouse requesting alimony. While permanent alimony used to be common, a judge is now more likely to award temporary alimony.

Division of Property

When dividing property amidst a gray divorce, couples must consider if property is marital or separate. Generally, any property obtained during the marriage is considered marital property and must be divided equitably. Equitable distribution is not necessarily equal and can be decided by a court according to each spouse’s income capacity, economic circumstances, and other factors. An exception would be inherited property, which is usually non-marital even when acquired during the marriage.

The longer a marriage has lasted, the more complex this process becomes. Assets that began as separate may be considered marital by a court, and some assets may be forgotten or unknown by one or both spouses. In addition to property, long-term couples often amass significant debts together, which must also be divided equitably.

Retirement Planning

Gray divorcees are often nearing retirement or may be retired already. However, the legal and financial ramifications of divorce may present significant challenges to your retirement plan. Similar to your property, you may have to divide your retirement accounts and pensions, limiting your available funds. Spouses who have not worked in several years may have to return to work or adjust their lifestyle to fit a smaller budget. Those still working may have to delay their retirement or make more substantial payments into their 401(k) to make up for lost savings.

Social Security Benefits

Fortunately, you may be eligible for Social Security benefits based on your ex-spouse’s record, even if they remarry. You must meet the following criteria to receive benefits:

• Your marriage lasted 10 years or longer.
• You remain unmarried.
• You are age 62 or older.
• The benefit you are entitled to receive based on your own work is less than the benefit you would receive based on your ex-spouse’s work.
• Your ex-spouse is entitled to Social Security retirement or disability benefits.

Contact a Professional Divorce Attorney

Gray divorce comes with many challenges, but you don’t have to navigate them alone. The team at Barna, Guzy & Steffen will make sure you receive the assets and funds you need to live a fulfilling life after separation. Contact us today to speak with an experienced divorce attorney in the Minneapolis-St. Paul area.