Gray divorce, a term referring to spouses separating later in life, is a rapidly growing phenomenon in the United States, with many more couples undergoing divorce at 55 and beyond. In fact, the National Institutes of Health reported that the percentage of divorces that were over age 50 rose from 8% to 27% in only two decades. While national divorce rates have been much lower in recent years, divorce at 55 and older has been steadily increasing. However, when separating later in life, couples often have much more financial and legal baggage to navigate during the divorce process.
Divorce at 55 and older often means navigating changes in estate plans, dividing large and complex assets, and understanding how a divorce affects health insurance and retirement accounts. Not to mention the legal obstacles that may arise after a gray divorce. For legal needs while separating, many divorcees seek the counsel of an experienced New Hampshire divorce attorney. A skilled lawyer from Friedman & Bresaw, PLLC can help address the financial and legal implications of divorce at 55. Call the office today at (603) 707-4800 to schedule your consultation.
What Are the Common Challenges for Gray Divorce?
Divorcees over 50 years old often face additional financial challenges, such as dividing large and complex assets like real estate and more. Additionally, it is much more important for older divorcees to ensure health insurance and retirement funds are accounted for and fairly divided in a divorce, which can introduce further legal issues. Separating at midlife may also require divorcing spouses to rework their estate plans to address the change in marital status.
Summary of Separating at Midlife
Divorce at 55 and beyond, often called gray divorce, involves distinct legal and financial considerations that differ significantly from divorces earlier in life.
- Gray divorce rates have increased substantially among individuals over 50, even as overall divorce rates have declined nationally.
- Separating later in life often requires addressing complex asset division, retirement accounts, health insurance coverage, and updated estate planning.
- Issues such as spousal support, reduced earning capacity near retirement, and the emotional impact of long-term relationship changes frequently shape these cases.
Friedman & Bresaw, PLLC, a New Hampshire law firm serving the Lakes Region and surrounding areas, works with individuals navigating divorce and related family law matters later in life.
Reasons for Divorce at 55
Many people find it unlikely that an older couple would go through a divorce after so many years together, but there are many reasons for divorce at 55. Many older divorcees cite reasons of feeling stagnant in a relationship, personal development and growth beyond unhealthy relationships, or searching for a meaningful connection, according to the Cleveland Clinic. Additionally, increased financial independence and opportunity for women means that staying in an unsatisfying relationship for financial support may no longer be necessary. Another contributing factor is “empty nest syndrome,” where spouses realize they have changed so dramatically after raising children, that going their separate ways is best. Whatever the reason, separating at 50, 55, and older is a rapidly growing trend.
What to Expect When Separating at 55 and Beyond
Divorcing earlier in life can be challenging, but the legal complexities of a gray divorce are often much greater. With a young couple divorcing, they may have to navigate child support and alimony payments. In terms of property division and wealth, however, there is generally not much to divide. A couple separating at 55 and older may need to consider how to divide the shared home, how to split retirement assets and investments, and how to retain health insurance. These additional challenges can be incredibly overwhelming, and there is a high likelihood of overlooking important legal details without professional insight.
A seasoned divorce attorney in New Hampshire with Friedman & Bresaw, PLLC may be able to assist with this process.
Complex Asset Division
One of the chief concerns with divorce at 55 and older is the division of assets. Most married couples jointly own property, and the accumulation of wealth and assets can make the division of property extremely complex when the time comes. Real estate is often the most difficult large asset to divide. In many cases, the property may need to be appraised and sold to properly divide the marital estate, although some couples may choose to allocate other funds or buy out equity in the property. Other complex assets may include art pieces, collectible items, or property with sentimental value.
Retirement Funds
Most young divorcing spouses do not have large retirement funds that need to be divided, but this becomes a primary issue when separating later in life. Gray divorces often must navigate the legal complexities of splitting retirement assets and calculating their value. In many cases, this process requires the insight of a financial expert to determine the worth of an investment so that it can be divided. Other factors, such as financial need and contribution to the estate, may also play a role in court decision-making.
Spousal Support
Spousal support, or alimony, can also be a contentious topic in many gray divorces. Spousal support is typically calculated based on factors like the couple’s standard of living, financial need, and earning capacity. Since many of these divorces take place near retirement age, the question of alimony can be much more complex than a divorce of a younger couple. It may be difficult to determine what is fair in a gray divorce case, as both spouses are likely to have increased financial needs and reduced earning capacity in expectation of retirement.
Health Insurance
Another critical piece of the discussion for gray divorces is health insurance. Typically, one spouse will be insured through the other’s employer, listed as a dependent or a spouse. However, in a divorce, this coverage may not be provided any longer. For divorced spouses aged 55 and older, the risks for diseases like alzheimers and other issues that would require long-term care are much higher. Being without health insurance could be a significant risk for a divorcing spouse, which means the value of this health insurance will likely come into the discussion.
Living After Divorce
Lastly, even if separating is necessary and beneficial in the long term, living after divorce is challenging. Many spouses, no matter how dysfunctional a relationship might be, come to rely on the consistency and stability of routine. Recovering from the emotional stress of a divorce can be a significant strain on older individuals, and many may find it difficult to rebuild a life after a divorce. Considering the emotional impact and weight of a gray divorce may also factor into planning for divorce at 55.
Speak with a New Hampshire Divorce Lawyer Today
Separating as an older couple can be fraught with challenges, both legal and financial, and going into a gray divorce unprepared could have serious consequences. An experienced New Hampshire divorce attorney from Friedman & Bresaw, PLLC can help inform you of the legal implications of divorce at 55 and beyond. Consider scheduling an initial consultation to discuss your options by calling the office at (603) 707-4800 to speak with a Lakes Region divorce attorney today.
Important FAQs About Gray Divorce and Separating at Midlife
The following frequently asked questions address common legal and practical concerns related to divorce at midlife and beyond.
What Is Gray Divorce?
Gray divorce refers to the dissolution of a marriage involving spouses who are typically aged 50 or older. These divorces often present different legal and financial challenges due to longer marriages and more accumulated assets.
Why Are Divorce Rates Increasing Among People Over 55?
Factors may include personal growth, changing relationship expectations, financial independence, and life transitions such as an empty nest. Many couples reassess long-term compatibility later in life and choose to separate.
What Financial Issues Commonly Arise In A Divorce At 55 Or Older?
Common concerns include dividing real estate, investments, retirement accounts, and other long-held assets. Health insurance coverage and long-term financial security also play a significant role in these cases.
How Are Retirement Accounts Handled In Gray Divorce Cases?
Retirement assets often require valuation and careful legal division, sometimes involving court orders or financial professionals. Courts may consider factors such as contributions, length of marriage, and future financial needs.
Does Spousal Support Work Differently In A Gray Divorce?
Spousal support determinations may involve added complexity due to proximity to retirement and limited future earning capacity. Courts often evaluate standard of living, financial need, and anticipated retirement circumstances.
Why Is Health Insurance A Major Concern In Divorce Later In Life?
Many spouses rely on coverage through a partner’s employer, which may end after divorce. Securing alternative coverage can be especially important given increased healthcare needs with age.
How Can Divorce Affect Estate Planning For Older Individuals?
A change in marital status often requires updates to wills, trusts, beneficiary designations, and powers of attorney. Failing to revise these documents may lead to unintended outcomes.
How Can Friedman & Bresaw, PLLC Assist With Divorce At 55 And Beyond?
Attorneys at Friedman & Bresaw, PLLC could help clarify available legal options related to asset division, spousal support, and long-term planning. Consider visiting with an experienced attorney at Friedman & Bresaw, PLLC to learn more about legal rights and potential paths forward.
