“Gray divorce” is a term that has become much more prevalent in society over the last few years, though it still isn’t commonly known. Gray divorce refers to older couples getting a divorce. There’s no definitive age at which something becomes a “gray divorce” nor is the term “gray divorce” a legal term that offers special or unique benefits. It is merely a moniker for older couples getting a divorce.
Gray divorce has been on the rise for a while now. In 2008, about 1 percent of every 1,000 married people aged 50 or more went through a divorce that year. Though that’s only 10 people out of 1,000, it also reflects a doubling of the statistic when compared to 1980.
So older people are getting divorced at a higher rate, and the population has only grown since then. gray divorce is a significant part of the divorce world, and people need to be aware of what kind of issues and matters need to be dealt with when you get a divorce at an older age.
Asset management and division is crucial. With so many assets that have been built up over lifetimes, these things are far more valuable at an older age than when you are younger. 401(k) plans, retirement accounts, other financial entities: these become massive assets in a gray divorce.
At the same time, your estate plan is an important part of a gray divorce. The many aspects that make up your estate plan — such as wills, trusts and life insurance — need to be amended and prepared for your post-divorce life.
Source: Vanguard, “How to deal with the financial challenges of late-life divorce,” Susan Brown, Accessed Oct. 9, 2014
