Divorce affects people in many age categories, but many assume older people remain together several years into their marriages more than younger persons. A review of divorce figures shows many married couples over age 50 break up. Some Tennessee marriages are long-term ones, and others are newer second or third marriages that don’t work out. Called “grey divorces,” those involving older persons could have additional financial complexities.
Finances and a grey divorce
A grey divorce may revolve around several financial matters. Retirement benefits could take center stage during divorce settlement negotiations, and a qualified domestic relations order (QDRO) may provide a solution. A QDRO helps a spouse seeking a portion of a partner’s retirement benefits or accounts. There might be tax savings and other benefits associated with the order, potentially helping both spouses.
Other tax-saving approaches could work for divorcing spouses. Some may look into Section 529 plans and grantor retained annuity trust (GRAT) options. When two spouses divorce and rely on one income, eliminating expenses may help the transition. Taxes could become burdensome expenses. Legal tax-saving strategies might reduce some financial stress.
Grey divorce asset distribution
A grey divorce may prove financially concerning for someone who relied on a partner for financial support. Therefore, procuring a fair settlement and alimony award could be a top priority.
Decisions about what to do with the family home might require careful deliberations. Keeping the home might be too expensive, so being inflexible about selling the property could be unwise.
Those with substantial assets who plan to remarry may wish to consider a prenuptial agreement. Such contractual agreements could prove valuable if the marriage doesn’t work out, as they address financial issues, including asset distribution and spousal support.