“G
INDUSTRY INSIGHT
ray 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
post-retirement. 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 post-
retirement. 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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documents for any retirement accounts
so your attorney can discuss whether
transfers are even an option.
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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