Gray Divorce: Complications and concerns
There is no clear definition of a “gray divorce,” in terms of age or length of marriage, but I think there are some common traits: children who have grown up; parties who are closer to retirement than not; and those who begin to consider financial resources, medical coverage, and lifestyle expectations as they transition from their prime working years into a later stage of life. For those who are in this situation, divorce may mean a major change of lifestyle, as they will need to return to work after a long period of time. Divorce can be a major change in lifestyle for people who are in this situation. They may have to return to the workforce in some capacity, and face the logistical and psychological challenges that come with re-employment. Financial planners can be extremely helpful in identifying realistic cashflow projections and assessing current and projected medical needs. In these cases, it is important to know what the Social Security benefits and Medicare coverage of a party may or may not provide. It is also important to discuss the timing of when these benefits should be claimed.
Gray divorces require deep discussions about what someone will need to live comfortably in their later years. This helps to understand those needs, while also taking into account the anxiety that a party might feel as they prepare for a future different from what they had anticipated during a long-term relationship (or a marriage that lasted a shorter time). While many gray divorce issues are not that different from other divorces, the nuances of the conflict between assets, income and time constraints to build the estate require thoughtful planning and strategizing.
