{"id":7553,"date":"2024-06-10T10:00:00","date_gmt":"2024-06-10T15:00:00","guid":{"rendered":"https:\/\/www.bgs.com\/blog\/?p=7553"},"modified":"2024-06-07T09:40:26","modified_gmt":"2024-06-07T14:40:26","slug":"what-you-need-to-know-when-navigating-a-gray-divorce","status":"publish","type":"post","link":"https:\/\/www.bgs.com\/blog\/2024\/06\/10\/what-you-need-to-know-when-navigating-a-gray-divorce\/","title":{"rendered":"What You Need to Know When Navigating a Gray Divorce"},"content":{"rendered":"\n

Divorces among couples over the age of 50 are on the rise across the United States. These \u201cgray divorces\u201d come with special challenges that younger divorcees may not face, such as planning for retirement with a more limited income. At Barna, Guzy & Steffen<\/a>, we understand the emotional, legal, and financial complexities involved in gray divorce, and we\u2019re here to help you through the process. In the following blog, we\u2019ve gathered important information that you should know if you are considering or navigating a divorce later in life.<\/p>\n\n\n\n

Spousal Maintenance<\/strong><\/h4>\n\n\n\n

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\u2019s 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.<\/p>\n\n\n\n

The judge will award alimony based on several factors, including each spouse\u2019s 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.<\/p>\n\n\n\n

Division of Property<\/strong><\/h4>\n\n\n\n

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\u2019s income capacity, economic circumstances, and other factors. An exception would be inherited property, which is usually non-marital even when acquired during the marriage.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Retirement Planning<\/strong><\/h4>\n\n\n\n

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.<\/p>\n\n\n\n

Social Security Benefits<\/strong><\/h4>\n\n\n\n

Fortunately, you may be eligible for Social Security benefits based on your ex-spouse\u2019s record, even if they remarry<\/a>. You must meet the following criteria to receive benefits:<\/p>\n\n\n\n