"Gray Divorce" on the Rise

While the circumstances of each divorce vary from couple to couple, there has been a recent influx in “Gray Divorce,” or divorce involving couples over the age of fifty.  This growing phenomenon poses its own set of complications. Most of these issues involve alimony and retirement, things which younger married couples sometimes haven’t even begun to consider. Because of shifting views of marriage, divorces are becoming more common for soon to be retirees and empty nesters, who are no longer finding personal satisfaction and fulfillment through marriage.

This phenomenon has pros and cons.  Many baby boomers are seeking personal contentment, and if their marriage is not providing them with this happiness they are willing to explore other avenues.

Yet, this poses financial problems for some, since retirement issues are huge for someone in his or her fifties and beyond. Closer to retirement, a 401K or pension is often taken into consideration, as it is much harder to rebuild the closer one gets to retirement and these assets can be greatly impacted during a divorce.  Social security must also be taken into consideration. While it cannot be divided, it can be set off against other income and assets and can also be equalized.

Another issue concerns alimony. For older couples divorcing after 25-30 years of marriage, spousal support/alimony may be ordered until the death or remarriage of a spouse or until ordered by the court. While retirement can trigger an end to alimony payments, this is only in the case of full-time retirement and not changing jobs. This is also subject to decision of the court. While previously a major asset in a divorce settlement, now that the housing market has tumbled, keeping or selling a house can become a huge issue during a gray divorce, especially if it was to be the retirement home.

Ultimately, with “Gray Divorce” on the rise, it appears that many are putting their self-fulfillment ahead of their financial concerns.  Yet, despite this rise in later-in-life divorce, each divorce is different and poses a unique set of complications.  But, at the end of the day, it is a very personal decision and one not come upon lightly, regardless of age.