Gray Divorce in Arizona
While the divorce rate has declined in the population as a whole. The rate has more than doubled for people over the age of fifty between 1990 and 2010. Baby boomers who are facing a divorce after years of being married are on the rise, and the phrase ‘ gray divorce ’ has been coined to describe this recent phenomenon. Whether you are seeking a divorce after 30, 40, or 50 years or marriage, a gray divorce after age 50 is different than a divorce in your 30s or 40s. Call our experienced gray divorce attorney at the Cantor Law Group , in Phoenix, Arizona!
What is a Gray Divorce in Arizona?
What Does Gray Divorce Mean?
A gray divorce is one in which both of the parties are over the age of 50. As we stated earlier, these types of gray divorces are becoming more prevalent because a significant percentage of the US population is aging. While the process of the dissolution of a gray marriage is the same as the process of any other marriages, coming to a settlement agreement can be much more challenging because each party in the divorce wants to protect themselves during the gray divorce and safeguard their financial future so that they are able to live comfortably in their later years. There is no denying the fact that splitting will get harder with age, both financially and emotionally. Not only must you separate your emotions from the division of assets, you must also worry about unique financial repercussions that may not even present themselves in other cases. Here are some of the reasons why divorce over 50 can be harder on both parties:
Your Income Has Diminished
Dividing assets is part of divorce proceedings , but this division can create unique problems for one or both partners. In your senior years, your ability to generate an income is either gone or it has diminished. When the income has stopped or slowed, splitting assets and fixed income can affect each party more than it would if you were still of working age. By divorcing during a time where you are seriously relying on your fixed assets, savings and Social Security, you are at-risk of not having enough money left to cover your bills and live the life you are accustomed to.
Arizona gray divorce attorney
Divorces are becoming increasingly common among the older population, often referred to as “gray divorces”. If you are in Arizona and are considering a gray divorce, it is important that you work with an attorney well-versed in the complexities of gray divorce. An Arizona gray divorce attorney can help you navigate the divorce process and help you obtain a fair settlement. They can also provide you with the legal guidance and support you need to make sure your rights are protected. A good gray divorce attorney in Arizona will take the time to understand the unique needs of their clients and will provide them with customized solutions to their issues. Choose an attorney who has extensive experience in handling gray divorces and who you can trust to work in your best interests.
Your Arizona Tax Filing Status Will Change
Many people wait to borrow against their retirement funds so that they are in a lower tax bracket when they are penalized. This is a strategy that is often recommended by financial advisers according to our gray divorce attorneys. These advisers do not consider what the repercussions will be if you go from a married filing status to a single filing status. Juggling your taxes can be difficult in your senior years as a single individual because you will be in a higher tax bracket even at your lower income level. You are also at risk of owing taxes on your retirement accounts when they are transferred from one to the other after assets are divided. Our family law firm can formulate divorce case orders in a way that can help minimize tax repercussions or attempt to avoid them entirely, if possible. We are not tax attorneys and you may need to seek the counsel of a tax attorney.
How to Protect Your Finances When You Are Going Through a Late-in-life Gray Divorce
Now that you understand the unique challenges you will face, it is important to learn how to avoid financial errors so that you do not have to worry about recouping from them. Here are some valuable tips to get protective of your finances so that you can still live comfortably once you are single:
Keep Cool When Discussing Marital Assets
When you get married, everything about your love for the other. When you get divorced, it is a business transaction that is all about money. If you let your emotions come into play in your divorce, it can be very difficult to divide your assets objectively. It is easier said than done, but you need to view gray divorce as a business deal instead of having the emotionally charged arguments that will cost you time and money. Our experienced gray divorce attorneys can help. Discuss splitting your assets calmly and remember that staying calm will actually keep more in your pockets. Starting over after a divorce at 50 isn’t easy but a fair financial settlement will go along way in getting you back on your feet.
Review Your Individual Debt and Your Shared Debt
You never want to be surprised by debt that is not in your name, especially if there are community property laws in your state. It is important to run credit reports on you and your spouse before you file so that you can list your debt as a couple and debt that was accrued by your spouse. The last thing that you want is a surprise as you are negotiating who will be responsible for specific debt.
Analyze Marital Assets and Retirement Accounts
In a grey divorce consultation, you need to consider what type of settlement will be most beneficial to you when you are negotiating. Some believe that offering a lump sum payment to the other spouse in an amount that will be less than the long-term value of the assets is wise, per female divorce lawyers. It can also be beneficial to transfer assets into a trust for the family or into a life estate. If you have a shared house with your spouse, consider how much financial sense it would make to keep it. Typically spouses, selling the Arizona home is the best choice because it costs to maintain and does not have a guaranteed future value. If you have retirement accounts together, be sure to discuss with your attorney the need for Qualified Domestic Relations Orders (QDRO) to avoid tax penalties.
Think About the Effects on Your Children
As you have aged, you have probably discussed your estate and how assets will be gifted. Divorce for couples over 50 can affect this estate plan and the generations to come. You need to consider how your Arizona divorce can affect adult children emotionally and financially. You should also give your children expectations on how their inheritance could change.
Do Not Overlook The Importance of Health Care
With older age comes medical issues, and you should have health insurance to protect your assets if you need medical care because an illness can affect your financial future. When you are coming to a settlement, remember important issues like long-term care and whether a Legal Separation instead of Divorce is the right path to take. A divorced person cannot typically keep a former spouse on their insurance after the divorce is granted, whereas the health insurance coverage can remain the same if the couple decides to legally separate vs. divorce.
Gray Divorce in Arizona and Social Security
If your marriage has lasted more than 10 years and the other spouse is over 62, they are entitled to receive spouse benefits as long as they are unmarried at the time. Keep this benefit in mind when reaching an agreement. The reason for divorce can vary but inevitably both parties will fight for the money. A divorce can weaken your financial security if you do not consider the challenges of separating assets. Make sure that you avoid the financial errors that you will not have time to recover from and safeguard your financial future.
Arizona Gray Divorce Attorneys
1. Collaborative Family Law Attorneys If you and your spouse want to create a marital settlement agreement without going to court, hiring a collaborative attorney may be an option. A collaborative lawyer allows you both to negotiate terms productively, without anger or manipulation, while both sides can participate and find common ground. This approach often leads to long-term harmony between ex-spouses and their kids when a divorce happens.
2. Arizona Litigation Attorney If you and your partner are unable to reach an agreement, a divorce lawyer could lead to court proceedings. This might occur if you and your former partner don’t settle on matters such as child or spousal support or any other divorce-related issue. A legal representative will represent you in court, fighting for child custody or other significant terms you deem necessary. Our Arizona divorce lawyer specializing in Gray Divorce should compile all data regarding your marriage and divorce before appearing in court. Make sure to obtain evidence to support your requests, which may necessitate expert testimony or uncovering flaws in the other spouse’s case.
3. Phoenix Legal Counsel A lawyer who works with you beyond the courtroom can help answer questions about how your divorce will affect your finances. They can break down complex financial concepts and provide legal advice regarding parts of your case. Find a lawyer with experience in family law for sound advice during your divorce in Arizona.
4. Phoenix Mediator Mediation typically precedes divorce court. An expert Arizona Divorce attorney can aid you to compromise for your divorce outside of the court, reducing both cost and time. You will have more control when you and your partner can collaborate to compose a settlement that takes into account all of your issues. A mediator can help you avoid disputes and enmity. Many couples who mediate their divorce stay friendly for years.
5. Arizona Family Law Specialist Many divorce attorneys in Arizona have substantial experience in family law. They are the most experienced for handling any situation related to a divorce . For example, if you are looking to resolve child custody concerns, you should have an expert in family law by your side. Maybe you need help prepping a prenup before the wedding. Lawyers can help with guardianship and conservatorship agreements, as well as splitting property after divorce.
Gray Divorce Questions & Answers
Q: How Common Are Gray Divorces?
A: Gray divorce is increasing in popularity, and as of 2020, over 25% of divorces are of couples over 50.
Q: What Issues Should I Consider for My Long-term Financial Well-being?
A: Consider how much you need to live off of in retirement, the estimated tax implications of any agreement made, and any life insurance you may need.
Q: What Resources Are Available to Help With a Gray Divorce?
A: Professional resources are available to help divorcees navigate the complexities of a Gray Divorce. Look for experienced attorneys with specific expertise in the unique issues that come with a Gray Divorce. Financial advisors and therapists may provide additional guidance and comfort during a difficult time.
Contact Our Experienced Family Law Attorneys
If you would like to speak with our gray divorce lawyers and family law attorneys about your specific case, call us for a free consultation. We can be reached 24 hours a day at (602) 254-8880 or by using our confidential email form .