Divorce is becoming a more common occurrence for people in their 50s and older. Gray divorces can be more complicated because couples have usually been together longer and have built an extended family making the breakup even more painful.
The end of a long marriage can also cause a lot of angst over the future financial health for both spouses, especially if the divorce becomes contentious. However, financial experts recommend both parties try to rise above the emotions and treat the split as a business deal.
Top issues to consider in a gray divorce
Splitting up a couple’s assets is the business side of a divorce and if you are considering a split from your long-time partner, focus on these six areas:
- Alimony: Make sure you know how much money your partner makes, and not just their base salary. Extra income can include stock options, ownership in different companies, car and trip allowances and other executive compensation.
- Dividing assets and income: California is a community property state, meaning a court will presume all property acquired and debts incurred during a marriage are equally owned by both spouses. Assets owned by one spouse before the marriage are not included.
- Inheritances: Rules can be complicated over inheritance, especially if your spouse received a distribution during the marriage but used the assets to benefit both of you. Know the amount involved and when it was received.
- Retirement accounts: Pensions and 401(k)s can be tricky but are generally considered marital property. Know the distribution rules for each plan.
- Social Security: Generally, spouses can collect Social Security benefits based on their partner’s earnings. However, the amount you receive can be determined by the length of your marriage and other factors.
- Life Insurance: In many cases, a spouse who pays alimony or child support may be required to have life insurance to cover future payments in the event of their death. Make sure you are the owner of the policy and listed as the beneficiary.
Know your rights when considering divorce
Divorce can be a painful and exhausting process, but if you are ending your marriage, you are entitled to a fair settlement. An experienced family law attorney here in California will protect your rights and work to provide you with the compensation you deserve.