Gray Divorce Raises Special Issues Regarding Asset Division and Alimony
The term “gray divorce” refers informally to breakups of couples 50 years of age and older after lengthy marriages. These divorces can differ from those involving younger couples simply because the shared decades also include shared retirement savings, real estate and other assets. Questions about long-term alimony are also more common, particularly when one spouse sacrificed a career to raise a family or to support the other spouse’s profession. In Georgia, courts consider all of these factors when dividing property and determining whether alimony is appropriate.
Couples undergoing gray divorces frequently have amassed assets that can be difficult to untangle. These may include multiple retirement accounts, pensions, investment portfolios, businesses, vacation property or a family home that has appreciated substantially in value over the years. Georgia follows the principle of equitable division, meaning marital property is divided fairly rather than automatically split equally. The court looks at each spouse’s contributions to the marriage (monetarily or in-kind), their individual resources and their needs to determine what distribution is proper.
Alimony often becomes a central issue in gray divorce. In a marriage that has lasted decades, one spouse may have delayed or abandoned their career to further the family’s interests as whole, either through childcare, management of the household or a supportive role in the other spouse’s career or business. Such sacrifices can affect their ability to self-support later in life. When deciding whether to award alimony and in what amount, Georgia courts examine such factors as the length of the marriage, the standard of living established during the marriage, each spouse’s income and resources, their age and health and their ability (or inability) to become self-supporting.
Healthcare is another major issue when older couples divorce. A spouse who was covered under the other’s employer-sponsored health insurance will need to obtain their own coverage after the divorce. Depending on their age and eligibility, that may involve COBRA benefits, private insurance or Medicare. Health concerns may influence decisions about both property division and spousal support, particularly if one spouse has significant medical expenses or limited earning ability due to encroaching disability.
Retirement benefits are also a focal point. ERISA-regulated retirement accounts may need to be divided through qualified domestic relations orders (QDROs) in order to avoid tax liabilities and penalties. Other types of plans must be evaluated to determine what is and is not separate property. Availability of Social Security benefits might also be relevant, as a former spouse may qualify to receive benefits based on the other spouse’s work record if certain federal requirements are met.
Finally, divorce later in life should prompt a thorough review of each spouse’s estate plan. Wills, trusts, beneficiary designations, powers of attorney and health care directives usually need to be updated.
Because gray divorce can reshape nearly every aspect of a person’s financial future, working with an experienced Georgia family law attorney can help protect assets, preserve retirement security and position both spouses for the next stage of life.
At the Law Office of S. Mark Mitchell, LLC in Newnan, Georgia, I represent residents of the Southwestern Atlanta Metro area in all aspects of divorce, including asset division and alimony. Call 470-344-8550 or contact me online to schedule a free consultation.
