Imagine spending decades building a life with someone, only to one day realize you want to go your separate ways. For many couples over 65, that moment is becoming more common in an increasing trend known as gray divorce. Divorcing later in life creates unique financial, emotional, and legal challenges.
From dividing decades of accumulated assets to securing financial stability in retirement, the process is not as simple as signing papers and moving on. One misstep could cost a spouse their fair share of marital property, retirement benefits, or spousal support.
This article explains the reasons behind the rise in gray divorces, key financial considerations, and actionable steps a spouse needs to take to secure their future in a gray divorce.
What Is Gray Divorce?
Gray divorce refers to couples divorcing after the age of 50. Since 1990, the divorce rate for those over 50 has doubled, while the rate for individuals aged 65 and older has tripled.
Factors contributing to the growing prevalence of gray divorces include:
- Longer Life Expectancy – With people living longer, many are reconsidering whether they want to spend the rest of their years in an unhappy marriage.
- Empty Nest Syndrome – Once their children move out, some couples realize they no longer have common interests and decide to go their separate ways.
- Financial Independence – More individuals, especially women, have the financial means to live independently, making divorce a more viable option than in decades past.
- Reduced Stigma – People no longer see divorce as a social failure but an opportunity for a fresh start.
- Desire for a Different Lifestyle – Some people want to travel, explore new interests, or pursue different goals without feeling tied to an unsatisfying relationship.
The point is, many couples are reevaluating their relationships later in life and deciding to separate, often due to personal fulfillment, financial independence, or shifting life goals. As a result, this type of late stage divorce is changing how older adults plan for their future.
Key Considerations for Gray Divorces in Maryland
Maryland residents, especially those with significant assets, can expect financial and legal challenges in a gray divorce, including:
Dividing Assets and Property
Maryland divorce laws follow equitable distribution, meaning that courts divide a couple’s assets fairly which does not always mean equally. This becomes more complicated if one spouse has a pension, investments, or business interests. It is, therefore, necessary to understand how Maryland courts determine and divide marital and non-marital property.
Retirement Accounts and Pensions
The division of retirement savings is often one of the most significant financial hurdles in a gray divorce. A Qualified Domestic Relations Order (QDRO) is necessary to divide certain retirement accounts without tax penalties. Social Security benefits may also be affected, depending on the length of the marriage.
Alimony and Financial Stability
Spousal support is a major factor in gray divorces, especially if one spouse was the primary earner. The court considers age, health, income disparity, and the length of the marriage, as well as any case specific factors, when determining alimony.
Estate Planning Updates
After a divorce, the parties must update their estate planning documents such as wills, trusts, powers of attorney, and beneficiary designations. Failure to make these changes could result in an ex-spouse receiving unintended financial benefits.
Steps to Take When Considering a Gray Divorce
When considering a gray divorce in Maryland, there are steps a spouse can take to protect their financial interests and future:
- Consult a Family Law Attorney – An experienced family law attorney will seek a fair resolution to the division of assets, spousal support, and other issues.
- Take Inventory of Marital Assets – Gather documentation on bank accounts, retirement funds, real estate, and other financial interests.
- Understand Retirement Benefits – Work with a financial advisor to determine how the divorce will affect retirement benefits.
- Revise Estate Planning Documents – Update will, trusts, and other legal documents to reflect the new circumstances.
- Seek Emotional and Financial Support – Consider therapy or financial counseling to help manage the emotional and economic impact of divorce.
How a Maryland Family Law Attorney Helps
As with any divorce, a gray divorce presents very particular legal and financial challenges, especially when significant assets are involved. A skilled Maryland family law attorney can provide valuable assistance in several ways:
- Protecting Financial Interests: An attorney can help negotiate a fair division of property by determining whether assets are marital or separate and working with financial professionals to value them accurately. This is especially important when businesses, retirement accounts, and investments are part of the equation.
- Determining Fair Alimony and Spousal Support: A family law attorney will help evaluate whether long-term or short-term alimony is appropriate based on factors such as income, health, and financial need.
Managing Retirement and Estate Planning: An attorney will help execute a QDRO properly to divide retirement benefits fairly. They can also help update estate planning documents to prevent unintended consequences.- Addressing Health Insurance and Social Security Issues: Many older adults rely on a spouse’s health insurance or Social Security benefits. An attorney will help determine alternative coverage options and explain how divorce affects eligibility for Social Security.
A seasoned Maryland family law attorney will work to reduce the legal and emotional stress of a gray divorce by handling all negotiations, minimizing legal disputes, and making the process as smooth as possible.
Contact Milstein Seigel for Legal Guidance in a Gray Divorce
Though a gray divorce presents unique emotional and financial challenges, the right legal strategy can make a significant difference in the outcome. Taking action now can help protect your future and financial well-being.
If you are considering a divorce later in life, contact the experienced Maryland family law attorneys at Milstein Siegel. We will work to protect your assets, secure your financial future, and plan for the next chapter of your life.