Even after decades of marriage, sometimes people grow apart and change.
Although divorce rates in Florida have declined, it often serves as the best solution for both parties. When a couple has spent years building a life, the financial impact of a gray divorce goes beyond assets, income, and property.
1. Review your estate plan
As a long-time couple, especially if you have children, you and your future ex have likely created a will and estate plan. An impending divorce requires rethinking and reviewing that plan. Along with ensuring you meet potential legal obligations, couples should also consider the split’s impact on children and grandchildren if one spouse has or will receive an inheritance, which also factors into your future plans.
2. Discuss life insurance beneficiaries
In cases in which you have to provide or get spousal support, that may have an impact on any life insurance policies. During mediation, couples should remember to look at insurance policies and determine if they need to keep the ex-spouse as the beneficiary to ensure support continues. Additionally, disability and long-term insurance should also get reviewed as part of the divorce proceedings.
3. Prepare to share retirement benefits
Although all divorces differ, some gray divorces may mean sharing Social Security and retirement benefits. If either party has reached the age of 62, the other spouse may have a claim to those benefits. Couples married for more than 10 years have built retirement assets together, which means those accounts will require planning on equitably splitting them.
A gray divorce comes with additional concerns and complications. Seeking outside help and maintaining good communication may help ease the process.
