Property Division Complexities Unique to a Graying Divorce
California Divorce, Property Division, Property Division

Property Division Complexities Unique to a Graying Divorce

Divorce after age 50, often called “graying divorce,” has become increasingly common in California. While any divorce involves challenging property division decisions, gray divorce presents unique complexities that require specialized legal expertise.

Understanding Gray Divorce Property Division

When couples divorce later in life, they typically have accumulated significantly more assets than younger couples. However, they also have less time to rebuild their financial security before retirement. This creates a high-stakes situation where every decision about property division can dramatically impact your quality of life for decades to come.

Unlike younger couples who may still be building their careers and assets, gray divorce involves dividing retirement accounts, pension plans, investment portfolios, real estate holdings, and potentially business interests accumulated over 20, 30, or even 40 years of marriage. The complexity multiplies when considering tax implications, retirement timing, and long-term care needs.

Common Property Division Complexities in Gray Divorce

Certified California Family Law Specialist Judy Burger understands the intricate financial landscape that older couples face when ending their marriages.

Retirement Accounts and Pensions

Retirement assets often represent the largest marital asset in gray divorce cases. Dividing 401(k)s, IRAs, pension plans, and other retirement vehicles requires careful attention to avoid devastating tax consequences. A Qualified Domestic Relations Order (QDRO) is typically necessary to divide retirement accounts without triggering early withdrawal penalties. However, different types of retirement accounts have different rules, and timing matters significantly.

Pension plans present particular challenges because they involve future income streams rather than current assets. Determining the present value of a pension requires actuarial calculations, and deciding whether to divide the pension itself or offset it with other assets requires sophisticated financial analysis.

Social Security Considerations

While Social Security benefits themselves cannot be divided in a divorce, your marital history affects your eligibility for spousal benefits. If you were married for at least 10 years, you may be entitled to claim benefits based on your ex-spouse’s earnings record. Understanding how divorce timing affects these benefits is crucial, and sometimes waiting a few months to finalize a divorce can make a significant financial difference.

Real Estate and Family Homes

The family home often holds both financial and emotional significance in gray divorce. Some couples have substantial equity built up over decades, while others may still carry mortgages. Decisions about whether to sell the home, allow one spouse to buy out the other, or delay the sale until a future date all carry different financial and tax implications.

Additionally, gray divorcing couples may own vacation properties, rental properties, or investment real estate that must be valued and divided. Capital gains taxes, rental income considerations, and property management responsibilities all factor into equitable division decisions.

Business Interests and Professional Practices

Many individuals reaching gray divorce age own businesses or professional practices. Valuing these entities fairly requires expert appraisals, and dividing them may involve complex buyout arrangements, continued co-ownership structures, or offsetting with other marital assets. Business valuation becomes particularly complicated when the business owner’s spouse’s personal expertise drives much of the company’s value.

Healthcare and Long-Term Care Planning

Healthcare considerations loom large in gray divorce. The spouse who was covered under their partner’s employer health insurance must secure alternative coverage, which can be expensive for those not yet eligible for Medicare. Long-term care insurance policies, health savings accounts, and provisions for future medical expenses all require careful consideration during property division.

Estate Planning Implications

Gray divorce necessitates a complete revision of estate plans, including wills, trusts, powers of attorney, and beneficiary designations. Failing to update these documents after a divorce can result in unintended consequences. Additionally, property division agreements should consider each spouse’s estate planning goals and ensure that the division aligns with their wishes for passing assets to children or other heirs.

How Certified Family Law Specialist Judy Burger Can Help

Judy L. Burger brings the distinction of being a Certified Family Law Specialist by the State Bar of California Board of Legal Specialization—a credential held by fewer than 10% of California family law attorneys. This certification requires extensive experience, ongoing education, and demonstrated expertise in complex family law matters.

With decades of experience handling high-asset divorces and gray divorce cases, Judy Burger understands the unique challenges facing older divorcing couples. She works with financial experts, tax professionals, and actuaries to ensure that all property division decisions are based on accurate valuations and comprehensive financial analysis.

The Law Offices of Judy L. Burger takes a strategic approach to gray divorce property division, focusing on your long-term financial security rather than simply achieving a quick settlement. Judy and her team analyze the tax implications of various division scenarios, project retirement income under different arrangements, and negotiate settlements that protect your ability to maintain your lifestyle throughout retirement.

Frequently Asked Questions About Gray Divorce

How is property divided in a California gray divorce?

California is a community property state, meaning assets acquired during marriage are generally divided equally. However, gray divorces often involve complex assets requiring expert valuation, and spouses can negotiate unequal divisions if both agree. Separate property acquired before marriage or through inheritance remains with the original owner.

Will I have to pay spousal support in a gray divorce?

Spousal support is common in gray divorce cases, especially when one spouse sacrificed career advancement for family responsibilities. California courts consider factors such as the length of the marriage, each spouse’s earning capacity, age, health, and standard of living during the marriage when determining support amounts and duration.

How does divorce affect my retirement timeline?

Gray divorce can significantly impact retirement plans. Dividing retirement assets reduces each spouse’s nest egg, potentially requiring delayed retirement or lifestyle adjustments. Working with financial advisors during the divorce process helps you understand how different property division scenarios affect your retirement timeline.

Can I keep the family home in a gray divorce?

Keeping the family home is possible but requires careful financial analysis. You must be able to afford the mortgage, property taxes, insurance, and maintenance on a single income. Sometimes refinancing is necessary to remove your ex-spouse from the mortgage, which requires qualifying based on your individual income and credit.

How long does a graying divorce take in California?

California requires a minimum six-month waiting period from when divorce papers are served until the divorce can be finalized. However, gray divorces with complex property division often take 12-18 months or longer to complete, especially if business valuations, pension appraisals, or disputed issues require resolution.

Protect Your Financial Future

Gray divorce property division decisions will impact the rest of your life. Don’t navigate these complex waters alone. The Law Offices of Judy L. Burger provides the experienced, specialized representation you need to secure your financial future.

Contact Certified California Family Law Specialist Judy Burger today for a consultation. With offices throughout California, we’re ready to help you understand your rights, explore your options, and achieve a property division that protects your retirement and long-term security.

Call us or visit our website to schedule your confidential consultation and take the first step toward your new chapter.

5 Things You Didn’t Know About Gray Divorce
California Divorce

5 Things You Didn’t Know About Gray Divorce

When couples divorce after age 50, it’s called a “gray divorce.” Since this term only recently came into use, there are things you may not know it. While it’s impossible to cover every detail in this article, we will look at five things you didn’t know about gray divorce.

The Gray Divorce Rate Has Increased

Divorce among U.S. adults has actually decreased for younger generations. However, the divorce rate for the 50 and older set has approximately doubled since the 1990s. The divorce rate for people over age 65 has almost tripled during the same time frame.

Longer Life Expectancy Is an Issue

This may be one of the most surprising facts about gray divorce. As some people reach their 50s, they take stock of their lives. If they are in reasonably good health, they may live for several decades. For some, longer life expectancy means more time with a spouse who makes them unhappy. Gray divorce can bring people the freedom they need to discover what will make them happy.

Gray Divorce Is More Common the Second Time Around

In general, people who have been divorced once may be more likely to divorce again. Baby boomers were more likely to divorce than preceding generations. As baby boomers reach age 50 and beyond, their prior marital history may catch up with them, leading to a gray divorce.

Retirement Plans May Be Affected

Whether the parties are retired already or still working, retirement plans often change due to the termination of their marriage. A qualified domestic relations order (QDRO) may give one spouse part of the other spouse’s retirement funds. Spousal support, if ordered, may cut into the amount of money the payer planned to save for their golden years. One or both parties may enter retirement with less money than they had planned on, including Social Security retirement benefits.

Adult Children May Be Upset

Few gray divorcees have to worry about child support and visitation. However, they still need to understand the effect divorce has on children. Even adult children may feel a sense of loss and a need for reassurance from their parents. Divorce can damage relationships between adults and their parents at any age.

Gray Divorce or Not, You’ll Need Help

Talk to an experienced California divorce attorney today. Please call us at (415) 293-8314 to schedule a confidential appointment with one of our attorneys. Ms. Burger is a California Certified Family Law Specialist and founder of the Law Offices of Judy L. Burger. We assist clients in California’s Northern to Central Coast, including San Francisco, Beverly Hills, Gold River, Santa Barbara, Ventura/Oxnard, and surrounding communities.
The Rise of Gray Divorce
California Divorce

The Rise of Gray Divorce

Jack and Susan B. had just celebrated their 32nd anniversary when they hit their children with a bombshell. They planned to divorce as soon as possible. No one really saw it coming. However, after much reflection, they joined the ranks of baby boomers heading for a gray divorce.

Divorce After a Certain Age

The term “gray divorce” typically refers to couples who divorce after age 50. According to Pew Research, the divorce rate for adults age 50+ has just about doubled in the past 25 years. Rates in other age groups have decreased, though. So, what is causing this “divorce revolution” among our older population?

Divorces are all different. Some of the reasons given for gray divorce include:

  • The couple may have grown apart over the span of their marriage. Interests, attitudes, even beliefs change over time. For some couples, these changes present insurmountable obstacles to their continued happiness.
  • Couples with children sometimes stay together until the children are out on their own. They may be unable to recover from empty nest syndrome and feels it’s best to separate.
  • Longer life expectancy may mean more time spent together after retirement. Some couples cannot imagine living without their spouse. Others cannot imagine living with their spouse through retirement.
  • People may have different beliefs about money, debt, and spending. At a certain point, especially looking toward the future, differences of opinion may grow too big to ignore.

While gray divorce is common, it is not without its perils.

Gray Divorcees Face Unique Problems

Most divorced couples experience the stress of reinventing their lives. Everything changes, from finances to living arrangements to relationships. However, people who divorce late in life have a few new wrinkles to deal with.

  • Sometimes the husband has been the breadwinner while the wife cared for home and children. This puts the wife in an awkward position after a divorce. Many older women who lack job skills and experience struggle to enter the workforce. Some may be able to rely on spousal support for years if the marriage lasted more than 10 years.
  • Often one spouse handled every aspect of the family’s finances. The spouse who was not involved in financial matters may face some unpleasant surprises during the course of the divorce. In addition, the non-financially-savvy spouse now has to take on their own financial planning.
  • The fact that gray divorcees are closer to retirement may also cause a few hitches. Spouses who expected to rely on retirement accounts in their golden years may have to adjust their expectations. Even worse, there’s not much time to rebuild before retirement. Older people may have maxed out their salaries and reached the end of their career opportunities, which could make rebuilding those retirement accounts very difficult.

As with any divorce, it’s best to consult with an attorney to make sure you get the best result.

Learn More About Filing for Divorce

The attorneys at the Law Offices of Judy L. Burger are experienced at all phases of divorce proceedings. Call us at 415-293-8314 to schedule a private appointment or visit our website. We maintain offices in San Francisco, Marin County, Santa Barbara, Ventura/Oxnard, San Jose, Gold River (Sacramento), and surrounding communities. We plan to add a Beverly Hills office soon.