Four Unique Challenges of Grey Divorce in Massachusetts
A grey divorce is broadly defined as a divorce involving a married couple over the age of 50. Notably, the rate of grey divorce has doubled over the last few decades (National Library of Medicine). There are some unique issues that can arise in these cases. Here, our Peabody 50+ divorce attorney highlights four challenges that often arise in grey divorces in Massachusetts.
Grey Divorce Challenge #1: Retirement Planning (Assets, Timing, etc)
Grey divorce in Massachusetts almost always has retirement assets as one of its core issues. Spouses going through a grey divorce may be at or near retirement. Their future finances will be closely linked to their retirement savings. Defined benefit pensions, 401(k)s, IRAs, and deferred compensation often represent the largest portion of the marital estate. Retirement assets can be especially challenging to divide in a divorce. Qualified Domestic Relations Orders (QDROs) may be required to ensure that there are no avoidable tax penalties imposed. A grey divorce lawyer in Massachusetts can help you navigate retirement assets.
Grey Divorce Challenge #2: Spousal Support is More Likely, but May Not Last Long
In Massachusetts, spousal support (alimony) can be awarded following a divorce. With that being said, it is not guaranteed in every case. One big factor in favor of spousal support: the duration of the marriage. Spousal support is more likely to be awarded after a long-term marriage. Notably, it is often an issue in grey divorce cases.
However, calculating it can be challenging. For most people income looks different after 50. Earning capacity may plateau or decline. Health issues can limit future work. Alimony determinations must account for those realities. Massachusetts law ties duration and amount to the length of the marriage and the parties’ financial circumstances under the law.
Grey Divorce Challenge #3: Health Insurance and Long-Term Care Coverage
Health coverage becomes a central issue in grey divorce. One spouse may lose employer-sponsored insurance and need to bridge coverage through COBRA or private plans. Premiums can be significant. Long-term care risk also enters the analysis. This is a big issue in 50+ divorce cases. The spouse must consider future medical costs, potential need for assisted living, and asset protection strategies. Ignoring these costs at the time of divorce can destabilize post-judgment finances within a few years. A proactive approach is a must.
Grey Divorce Challenge #4: Estate Planning, Beneficiaries, and Post-Divorce Security
Divorce after 50 forces a reset of estate plans. Beneficiary designations on retirement accounts and life insurance must be updated immediately. Trust structures may need revision to reflect new ownership and support obligations. Massachusetts courts can require life insurance to secure alimony or property equalization. To navigate divorce as smoothly and effectively as possible, a divorcing couple must coordinate settlement terms with estate documents.
Contact Our Massachusetts Divorce Lawyer for Senior Citizens Today
At Reade Law Firm, PC, our Massachusetts 50+ divorce attorney has the professional experience that you can count on. If you have any questions about grey divorce, we are here to help. Contact us today to set up your completely confidential case review. With an office in Peabody, we represent senior citizens in divorce cases throughout the broader region in the Commonwealth.
Source:
pmc.ncbi.nlm.nih.gov/articles/PMC9434459/