In recent years, one of the most notable trends in family law has been the rise of “gray divorces,” or divorces for couples over the age of 50.
Sometimes also referred to as “silver divorces” or “silver splitters,” a gray divorce is marked by parties who are older (as young as 50) who decide to divorce. While divorce at any stage of life can be emotionally and financially challenging, gray divorce presents a unique set of legal and personal considerations, especially under Maryland law.
As an experienced Maryland family law attorney, I’ve helped many older individuals navigate the complexities of divorce later in life. Whether you’re contemplating separation or already facing proceedings, understanding the key issues surrounding gray divorce can help you make more informed, confident decisions.
Are Gray Divorces Increasing?
From 1990 to 2019, the rate of divorces that involved couples aged 50 or older grew from 8.7% to 36%. (Brown, S.L., & Lin, I., Journals of Gerontology: Social Sciences, Vol. 77, No. 9, 2022). Factors for the increases include the following:
- Greater access to divorce, including cost and lessened grounds
- Longer lifespans of clients, thus a greater emphasis on personal fulfillment
- Empty nest syndrome after children leave home
- Changing social norms that make divorce more acceptable
Key Legal Considerations in a Maryland Gray Divorce
1. Division of Retirement Assets
Retirement accounts are often among the most significant marital assets in a gray divorce. In Maryland, retirement accounts accumulated during the marriage are considered marital property, even if the account is in only one spouse’s name.
- Eligible Domestic Relations Orders (EDROs) may be necessary for retirement accounts, including pensions, 401(k)s, or other plans.
- The DMV region generally requires an increased focus on government and/or military retirement benefits, so careful consideration should be given to the valuation of said assets.
2. Spousal Support (Alimony)
The length of a marriage is a significant factor when considering whether or not alimony should be afforded in a divorce case. While there are many statutory factors that the Maryland courts consider, some include:
- The duration of the marriage
- The age and health of both parties
- Standard of living during the marriage
- Earning capacity and employment history
Just because the spouses are elevated in age does not disqualify an individual from a claim for alimony. In fact, many gray divorce parties may be more of a candidate for alimony than younger parties. Therefore, careful consideration of alimony, from an eligibility perspective to an exposure perspective, should be given.
3. Health Insurance and Long-Term Care
Divorcing after 50 often means one spouse loses access to the other’s employer-sponsored health insurance. If Medicare isn’t yet an option, this can create a financial strain. As with retirement benefits, the DMV region offers a higher proportion of divorce cases that involve government/military insurance issues, making careful consideration a must.
Additionally, long-term care plans should be reviewed and revised as needed, especially if one spouse was previously the caretaker or financially responsible for the other.
4. Estate Planning and Beneficiaries
Many gray divorces revolve around estate planning issues. This is because people consider their estate concerns at a higher level as they age. Therefore, when unhappiness creeps into a long-term marriage, parties consider divorce as an opportunity to facilitate a larger estate plan. Therefore, it is crucial to:
- Update beneficiary designations on life insurance, retirement accounts, and bank accounts
- Revoke outdated powers of attorney
- Draft a new will or trust post-divorce
5. Adult Children and Family Dynamics
Though custody battles aren’t typically an issue, gray divorces can still affect adult children emotionally and financially. As set forth above, estate planning is often a driving feature of gray divorces, with adult children often the catalyst. Issues including inheritance expectations, family business interests, or support for college-age children can complicate proceedings. It is important to consider the motivations of people around you when determining if moving forward is the right decision.
Preparing for a Gray Divorce: Smart Steps
If you’re over 50 and considering divorce in Maryland, here are a few strategic tips:
- Consult with an experienced family law attorney who understands the nuances of gray divorce and can advocate for your long-term interests.
- Gather financial records and obtain valuations of retirement, investment, and real estate assets.
- Meet with a financial advisor to assess your retirement readiness post-divorce.
- Reevaluate your estate plan with your lawyer or estate planning attorney.
Final Thoughts
A gray divorce can offer you a fresh start, but it also comes with significant legal, emotional, and financial implications. If you are contemplating a divorce action in Montgomery County or anywhere in Maryland, contact Christopher Castellano to schedule a confidential consultation.
