Divorce occurs at all ages. There is a national rise, however, in “gray divorces.” A gray divorce is what is often referred to as a divorce between older adults later in life & typically from long lasting marriages. The age group is commonly referred as the “baby boomer generation.” Among other reasons, this age group is seeing a rise in divorces because there is no longer a stigma associated with divorce (as baby boomers’ parents espoused) and often these partners simply grew apart after raising their children – i.e., “empty nest syndrome.” Whatever the reason, there are special considerations for those who are in this age group and contemplating divorce.
Most of those who are in the “gray divorce” category are either retired or nearing retirement. A fixed income means it’s important to consider what income will be available post separation as well as costs and expenses. Therefore, it is crucial to plan and budget after thoroughly considering what may or may not exist post-divorce. For instance, social security entitlement may be less than expected depending on the length of the marriage. Additionally, health insurance costs may skyrocket for a partner who loses coverage post-divorce.
Many fifty-something, middle aged people have what is considered the stereotypical relationship where one partner is the breadwinner while the other partner stayed at home. If this is your situation, spousal support may be fitting. This begs the question, however, of whether the payor of the support can make such payments and if so, will it be enough to allow the payee spouse to live independently? If not, the receiver of the support may be facing the reality of reentering the workforce after a significant gap in employment. Additionally, the reality is that there are fewer working years remaining to supplement any shortfall in income. Any way you look at it, the result might be a drastic change in standard of living for you and/or your partner.
Other assets like your home may also be difficult to decide. After many years of investing in the value of your home, raising children in the home and having an overall emotional connection, it can be daunting to say the least when faced with deciding how to divide this asset. Maybe one of you will “buy out” the other and remain in the home. This comes with real burdens too however because current interest rates are exorbitant which makes a refinance costly. Perhaps your home will be sold to a third party, and you will divide the equity. It can be tough to think about where you will relocate and what you will be able to afford. Either way you go, you and your partner will need to agree upon a fair market value of the home.
At McGill Law, if we don’t have the answers to the many questions and issues you are facing, we will make sure to put you in the right hands of the expert who can provide the missing information. For instance, we regularly work with certified divorce financial analysts who can help you thoroughly gather and organize all the required assets and debts; help you prepare budgets so you can plan to have adequate expendable income down the road; and help you make the most of your investments by suggesting creative solutions for divisions. Additionally, we will connect you with experienced realtors, appraisers and mortgage brokers who have creative solutions for your home. Essentially, we collaborate as a team to help you reach an equitable solution enabling you and your partner to untie the knot with dignity. If you are contemplating a gray divorce, give us a call in Omaha, Bellevue, or Lincoln at 402-548-5418. We have your back!