As gray divorces happen later in life, most couples will not need to consider child custody or child support – two areas of high contention in other cases. With these divorces, any children involved may not be adults and out of the house.
However, getting divorced close to retirement age will likely introduce unique financial challenges. Key factors to consider with gray divorce may include:
- Dividing retirement accounts.
- Separating shared assets and properties after potentially decades together
- The potential for spousal support or alimony
Typically, couples divorcing later in life have accumulated more assets, making property and asset division high stakes. How to divide retirement accounts and pension plans will likely be the biggest challenge. A qualified domestic relations order (QDRO) can detail how to divide retirement plan assets fairly between spouses.
Another consideration for those divorcing will be how to adjust their retirement plans. Divorce may set back retirement plans for a few years or if an individual has already retired, they may require financial guidance on adjusting their lifestyle to fit their new financial reality.
