Gray divorce refers to older couples who have decided to end their marriage. These divorces are unique because they often involve a long-term marriage and the need to divide substantial assets. If you are considering divorce later in life, it is important to understand how it may differ from divorcing at a younger age.
Long-Term Marriages and Dividing Assets
Many gray divorces involve couples who have been married for decades. By this stage, they may have adult children and are concerned with dividing the property and assets they have accumulated together, providing for the non-monied spouse and leaving a legacy for their family. This often includes retirement accounts, investments, and real estate. In most long-term marriages, prenuptial agreements are uncommon, which will make valuing the assets and tracing their growth more important. Properly determining and defining the property is part of working to achieve a fair division for both spouses.
Family Dynamics
Gray divorces also happen in second or third marriages. In these situations, older couples face challenges when their adult children from previous relationships get involved. These adult children may believe they are protecting their parent’s financial interests, but their involvement can create tension and strain the marriage. Because of these concerns, later-in-life marriages often include prenuptial agreements, usually that have been encouraged by their adult children. When a prenup is in place, it makes dividing assets much simpler and less contentious in the divorce process.
Retirement Plans and Financial Professionals
Dividing retirement accounts in a gray divorce can be more complicated than in a divorce with younger clients. The couple may have pensions, 401(k)s, or other retirement plans that require specific steps for valuation and division. To handle these matters, they may need to work with professionals such as accountants, financial consultants, and pension specialists to clearly define the value and character of the assets.
If one spouse has handled most of the finances during the marriage, then you may need more time and help to understand the full financial picture. Gathering financial records and working with a divorce financial expert can make this process smoother.
Benefits of a Collaborative Divorce
For older couples, Collaborative Divorce is a better divorce option. It offers many benefits, such as keeping your personal matters private and reducing conflict. Collaborative Divorce encourages open communication and creative problem-solving, to help you and your spouse come to agreements that suit both of you. This is especially helpful when there are differences in income or experience managing finances, as it allows for customized solutions that lead to fair outcomes.
Another advantage of Collaborative Divorce is that you work with a team of divorce professionals who guide you through the divorce process. The team includes your attorneys, a neutral financial professional, and a mental health professional. For gray divorces, the neutral financial professional plays an important role. They help you both to understand your finances, divide your assets fairly, and to plan for your future. The advantage of using one neutral financial professional instead of separate ones for each of you saves time and money compared to fighting it out in court. The Collaborative Divorce team approach reduces stress and helps you to make informed decisions without unnecessary conflict.
Contact Paula Lock Smyth Law Offices
If you are facing a divorce as an over 50 couple, Paula Lock Smyth Law Offices can guide you through the process. We have the experience to handle the unique issues that come with gray divorce. Contact us today at 214-420-1800 to schedule a consultation. Our office is located at 2911 Turtle Creek Blvd., Suite 300, Dallas, TX 75219.