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A gray divorce—typically defined as divorce involving spouses age 50 or older after a long-term marriage—presents unique legal, financial, and emotional challenges. In Georgia, the most significant issues often differ from those faced by younger couples because retirement, healthcare, and long-term financial security become central concerns.
The gray divorce rate grew at a slight incline between 1970 and 1990, before doubling by 2010. The divorce rate continues to climb among older adults. According to the National Library of Medicine, “In 1990, fewer than one in ten (8%) persons getting divorced were aged 50 and older. By 2010, more than one in four (27%) people getting divorced were at least age 50.”
Dividing Retirement Accounts and Financial Security
For many couples over 50, retirement assets represent the largest portion of the marital estate. These couples have been working together on building their financial security for decades, whether that is savings, a business built together, real estate, or stocks. Dividing those assets is not always a 50/50 split. The split of retirement assets can affect each spouse for the rest of their lives, so it’s important to talk to your lawyer and make a thorough plan about what you’d like to fight for, while acknowledging that assets may not be split down the middle.
Many factors go into determining how much of the marital assets go to each spouse, such as length of marriage, each spouse’s health and age, and future earning capacity. Unlike younger divorcing spouses, gray divorce participants often have limited time to rebuild wealth, and this can play a crucial role in splitting assets. Many individuals discover that assets that appeared substantial during the marriage may not adequately support two separate retirements.
Common issues include:
- Division of 401(k)s, IRAs, pensions, and deferred compensation plans.
- Determining the marital versus separate portion of retirement accounts.
- Tax consequences of withdrawals and transfers.
- Proper use of a Qualified Domestic Relations Order (QDRO) when required.
- Whether retirement goals remain achievable.
- Loss of economies of scale from maintaining two households instead of one.
- Increased living expenses.
- Preservation of investment and retirement income.
Alimony and Insurance Concerns
Alimony is frequently a major issue in gray divorce cases. These couples have typically been together for most of their adult lives, and they have built a majority of their income during these years. There are many factors that help the judge decide if alimony will be awarded, and how much alimony will be awarded to the spouse seeking support.
Georgia courts consider factors such as:
- Length of the marriage.
- Age and health of the parties.
- Standard of living during the marriage.
- Earning capacity of each spouse.
- Financial resources available to both parties.
- Whether one spouse has been out of the workforce for many years.
- Whether a spouse is nearing retirement.
- Whether retirement benefits are the primary source of future income.
- Whether a spouse’s ability to become self-supporting is limited.
Healthcare can become one of the most significant financial issues after age 50. It is important to consider factors such as loss of coverage if you are under your spouse’s health plan, Medicare eligibility, ongoing medical expenses, and long-term care planning. A spouse who has relied on the other’s employer-provided benefits may face unexpected healthcare costs after divorce.
Why Gray Divorce Requires Special Attention
The primary challenge in a Georgia gray divorce is that there is usually less time to recover financially from mistakes. Decisions involving retirement assets, alimony, healthcare, and property division can affect a person’s financial stability for the rest of their life. Careful planning and a thorough understanding of Georgia’s equitable division laws are particularly important when ending a long-term marriage.
Divorce can be a long and tiring process, and finding a lawyer who is passionate about fighting for you can make the process much smoother. Abbott Law Group is here to help. Please call our firm in Marietta at (678) 941-4147 or Canton at (678) 293-7251 to schedule a consultation with our lawyer. We are also available and responsive through secure email. We look forward to meeting with you.
