If you’re among the growing number of people considering divorce after decades of marriage and you’re in your 50s or older, you may hear the term “gray divorce” used in reference to your situation. As unsettling as that description might be, the good news is that because it’s becoming more common, legal professionals are increasingly experienced at guiding people through this kind of later-in-life divorce and its unique challenges.
Certainly, every divorce is unique. However, one or more of these tips can be helpful for most mature divorcing Arizona residents.
Learn about Arizona’s community property law
Contrary to popular belief, community property states like Arizona don’t require a strict 50/50 division of property. Virtually all property acquired during the marriage becomes marital property, which is divided equally unless a couple decides otherwise or has a prenuptial or postnuptial agreement stating differently. However, separate property – like inheritances, gifts and things owned before marriage, typically remain with one person unless the assets have become commingled.
Taking inventory of all assets and debts before your divorce begins to determine which category each fits into can be helpful. Then you can decide which marital assets are your priorities as you enter property division negotiations.
Know how to divide retirement accounts without penalties
If you and your spouse have worked for decades, much of your wealth is likely in retirement accounts like individual retirement accounts (IRAs) and employer-sponsored retirement accounts like 401(k)s. The latter typically require a qualified domestic relation order (QDRO), which is a court order that allows assets to be transferred between divorcing spouses without incurring penalties. Understanding your rights and responsibilities in this regard can help you make more informed decisions.
Determine whether alimony is a consideration
If one spouse earns significantly more than the other, maybe because the lower-earning spouse put their career on hold while they raised children, that lower earning spouse can likely obtain alimony (spousal maintenance), at least temporarily. Whichever side of the alimony equation you’re on, it’s important to understand the types available and what factors judges take into consideration.
Agree on continuing commitments to adult children
It’s important to keep any commitments you’ve made to pay for your kids’ college or graduate school education. The same is true, although maybe not as critical, if you’ve promised to help pay for their wedding, first home and/or your grandchildren’s education. Parental divorce is hard enough on adult children without unexpected financial fallout.
Get your own professional advisors
You shouldn’t share a divorce team with your spouse. Remember that your “team” should include financial and tax advisors. If you and your spouse have shared advisors for many years, you’ll need to get new ones who have no conflicts of interest. Having individualized guidance – including, of course, experienced legal guidance – can make all the difference to your future.
