After the children are grown and have left home, couples may feel they have grown apart and want a divorce. Be aware that a gray divorce can have devastating financial consequences.
Divorce after 50 can drain the finances of both people involved. A divorce is not only hard on your health but also empties your wallet. Here are some things to keep in mind.
Determining alimony is more complicated
Sometimes one spouse will stay home for the duration of the marriage. In such cases, the court will order a working spouse to pay alimony.
Matters become complicated when one partner has a well-developed career. The court will look at a spouse’s total compensation when determining alimony. This can include car allowances and stock options among other things.
Dividing marital assets is challenging
The court will look at many factors when deciding how to divide the property. If one person owned an asset before marriage, the court will determine that it is separate property. Still, if the other partner helped pay for the asset after marriage such as paying a mortgage, the court may conclude it is a marital asset.
Dealing with an inheritance can be difficult
The court will often decide that an inherited asset is separate property. Things become difficult when that inheritance becomes commingled with other marital assets. For example, if one spouse deposits funds from an inheritance into a joint account, the court considers it a marital asset.
Finally, be careful when negotiating alimony payments with a spouse who is about to retire. After a divorce, you will not be able to collect your spouse’s social security benefits.