“
Gray
Divorce ” is a term most commonly used to refer to divorces among Baby Boomers or those over the age of 50 . The divorce rate for couples over the age of 50 doubled between 1990 and 2010 , and more than doubled for those over 65 . It is expected that these numbers will continue to rise into the coming years as well . This increase among older couples is occurring during a time when the national divorce rate is doing just the opposite . Today , one in four divorces involves a couple over 50 .
The issues facing couples who divorce later in life can be very different , as concerns about financial stability , retirement and alimony have a different impact for those over 50 . If you are considering a “ gray ” divorce , or are faced with a spouse who wants to divorce , here are some important items to consider .
Retirement . In some cases , one spouse has put away substantially more for retirement than the other spouse . Typically , this is with the understanding that , because they are married , they will share in those funds upon retirement . In general , anything earned or contributed to a retirement account during the marriage can be considered marital property . This could mean that if you were the spouse who saved for retirement , a portion of those funds may be transferred to your spouse upon divorce . This could have a lasting impact on your retirement plan and your ability to support yourself postretirement . Those divorcing earlier in life may have ample time to rebuild the retirement coffers but the over-50 group does not have this luxury . You should have an understanding of all retirement assets of both spouses and talk with your attorney on options .
Another important consideration is for those considering divorce postretirement . Many pension or defined-benefit plans cannot be altered once they are in pay-status . This means any elections on benefits may be unchangeable even in the face of a divorce . Have all plan
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Alimony . Alimony is based on a number of factors , including the respective incomes of each party . As people spend more time working in their chosen field , their compensation packages can become more varied and complex — involving bonuses , stock options or other perks . All of these items should be considered when determining if alimony is warranted , and if so , in what amount and for how long . You will want to have as much information as possible on all forms of income you and your spouse receive .
Equitable distribution . Pennsylvania law dictates that courts weigh a number of factors when determining the share of the marital estate each spouse walks away with . The length of the marriage , contributions each party has made to the other ’ s earning power , and the economic circumstances of the parties are all things a judge would consider . Since Gray Divorces typically involve lengthy marriages , these factors can
carry different weight . Another unique consideration for the Gray Divorce is expected inheritance . While an expected inheritance from an aging parent may seem far off and speculative for the 40-year-old divorcing couple , those in their 50s or 60s may have already lost a parent . If a spouse has or will be receiving an inheritance in the future , this could also change the distribution scheme .
It is important to consult an attorney when considering a divorce regardless of age .
This Industry Insight was written by Brooke B . McMorrow and the attorneys at McMorrow Law , LLC .
Attorney Brooke McMorrow is the founding member and Managing Attorney of McMorrow Law , LLC located in Wexford . The practice focuses on family law matters such as divorce , custody , child support , guardianship , estate planning , and probate / estate administration in Pittsburgh and the surrounding counties . Attorney McMorrow is collaboratively trained and a certified mediator . She is also a founding member of Collaborative Solutions North . She is licensed to practice in Pennsylvania and New York . For a free initial consultation call 724.940.0100 or visit the website at www . mcmorrowlaw . com .
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