While divorce rates have flattened for most age groups, there is one segment of the population where divorce rates are actually increasing - couples in long-term marriages.
A phenomenon known as gray divorce.
Certainly divorce is difficult no matter how long you've been married or how old you are. But if you're divorcing after a long-term marriage, there's a whole lot you need to know - and watch out for!
In this post you'll learn:
- What is a gray divorce;
- How does your education level factor into whether or not you'll divorce;
- The 8 most common gray divorce reasons;
- 3 reasons why divorce mediation is your best option for divorce later in life;
- And the 7 critical legal and financial gray divorce issues you need to be aware of.
Let's get started.
What is a Gray Divorce?
When the term was first coined, it referred to men and women who divorced after 40 years or more. The assumption was that anyone married for that long must be an older adult "starting to gray," hence the name.
But these days, it's more commonly used to refer to the divorce wave among baby boomers, regardless of the length of their marriage or the color of their hair.
As a point of reference, most of our clients falling into this category have been married between 20 and 30 years.
Over the past 20 years, the divorce rate in the United States has actually declined. But for the over-50's, the divorce rate has actually doubled.
In fact, of all of those who went through divorce in 2009, 1 in 4 individuals was age 50 or older according to a paper, “Gray Divorce: A Growing Risk Regardless of Class or Education” written by two sociologists at Bowling Green State University – Susan L. Brown and I-Fen Lin.
8 Grey Divorce Reasons:
In my experience, there are 8 reasons long-term couples typically choose to have a late life divorce and none have anything to do with being a baby boomer.
Reason #1: "We've Simply Grown Apart."
Some couples can pinpoint the exact cause of the demise of the marriage. But in a grey divorce, there was no infidelity and no major blowout that led to the decision to get divorced. Instead, the spouses have simply grown apart over time.
The couple chooses to begin divorce proceedings when one of two things happens:
- They have adult children or their last child goes off to college (aka "empty nest syndrome.")
You've spent the better part of your marriage raising kids and now you've found yourself without a child to focus on. Leaving only your spouse.
"Who is that stranger sitting across from me?" you wonder to yourself. And suddenly you find yourself uncomfortable being around "this person," you no longer know.
When a couple is working and/or raising kids, they're busy. Perhaps so busy that they don't notice they are growing farther apart with each passing year. But now that one or both are in retirement, they have a lot more time on their hands and again, realize they no longer know their husband or wife.
If you and your spouse are seeking a gray divorce because you've grown apart, consider using divorce mediation.
In my experience, couples who fall into this category are low-conflict and are able to successfully work together to come to an agreement in a fair and cost-effective manner.
Reason #2: Age
We've all got one (or maybe more) of those friends who every time we ask them how they are, they launch into:
- How bad their feet hurt; or
- How they pulled their back out; or
- How their eyesight isn't what it used to be.
I get it - aging stinks. But being around someone who acts old can make us feel old. So for some, when they see their husband or wife aging (or repeatedly hear them complaining and being negative), it can be an unwelcome reminder that they're getting older, too.
So perhaps they think if they divorced their spouse for someone younger, it will reverse time for them as well.
In these cases, mediation can work, but it will depend in large part on the mindset of their husband/wife.
Mediation requires both parties to actively participate in gathering discovery, completing forms and worksheets (the "pre-work") and working together to negotiate the terms of their agreement.
So if your spouse has an "old-fashioned" mindset, he/she may not be open to the modern concept of divorce mediation.
Reason #3: Self-Improvement
There's a great line from the Bruce Springsteen song "Dancing in the Dark" that goes:
"I check my look in the mirror, I want to change my clothes, my hair, my face..."
After so many years of of looking, dressing or feeling the same way, some people want to make changes to the way they are living their life (lose weight, exercise, improve their appearance). But in order to do that, they need a spark lit under them to get them motivated to make their desired changes.
And that's where interest in a new "special someone" comes into play. Sometimes people think meeting or pursuing someone new will make them try harder in life, lose weight, dress better, etc. and help them achieve the changes they seek.
Again in this case, mediation can work, but really depends on the emotional state of your current spouse. There may be a lot of hurt feelings and resentment because you're leaving them for someone else.
And your spouse may not be in a "sit down together and work through the terms of the divorce as adults" frame of mind.
Reason #4: Money and Spending Habits
When couples are in their prime earning years, a lot of financial missteps can be overlooked. Because the money keeps flowing in, the bills somehow get "taken care of" and the overspending spouse is ignorant to the couple's precarious financial situation.
But once the income stream stops and the couple is forced to live on a fixed income or whatever they've managed to save for retirement, it can be quite sobering. Differences in spending habits become abundantly clear. And may lead to one spouse wanting to get divorced.
Mediation is ideal in situations like this. Especially if you work with a divorce mediator who has a financial background.
For example, if you mediate your divorce with me, we'll work together to prepare and review a series of budgets that show what your marital spending looked like and what your projected separate spending will look like post-divorce.
This approach is quite effective in helping the "spendthrift spouse" understand that things need to change, as in my experience, numbers don't lie. And an added benefit is that mediation is far more cost-effective than a traditional attorney-driven divorce.
Reason #5: Sex
Just like differences in spending habits, differences in sex drives can also sink a marriage.
As spouses get older, their sexual appetites may differ, sometimes dramatically. Regardless of what you see on those commercials touting the latest ED drugs.
This can lead to frustration and ultimately the desire to divorce.
Divorce mediation can work in these situations, but only if your spouse is not so apathetic that they do not have the motivation to actively participate in the process.
Reason #6: Longer Life Expectancy
According to data compiled by the Social Security Administration as of 2016:
- A man reaching age 65 today can expect to live, on average, until age 84.3.
- A woman turning age 65 today can expect to live, on average, until age 86.6.
- About one out of every four 65-year-olds today will live past age 90.
- One out of 10 will live past age 95.
For couples seeking a grey divorce, it's quite possible each spouse could live another 30, 40 even 50 years. So one thinks, "Why spend the time I have left on this earth miserable in an unhappy marriage?"
Once again leading them to want to divorce their wife or husband. Mediation will be a viable option, but only if their spouse is willing to actively participate in the process.
Reason #7: Undo Past Regrets
"Try to marry a nice boy," your mother said.
"Find a good mother for your children," your father said.
Being the good son or daughter, you did the "right" thing and married the person you were "supposed to." And whom your mom and dad approved of. Thing is, they weren't necessarily the person you wanted to marry. And now here you are, stuck in a long-term marriage, filled with regret as you reflect back on your life.
You've now decided after all these years that being unhappily married is no longer acceptable to you.
Many of our clients fall into this category and in these cases, it's usually not a surprise that a divorce is coming as both spouses have been unhappy for a very long time.
By the time they decide to divorce, the fighting has subsided and they're both in the camp of simply wanting to move forward separately with their lives. That's why mediation is ideal for situations like this.
8. Active vs. Passive Lifestyles
"He just wants to sit on the couch and watch TV, but I want to go on cruises, get dressed up and dance!"
"She just wants to sit home all day doing crossword puzzles, but I want to go on vacation and see all those places we talked about going to but never did!"
When one of you wants an active retirement and one if you refers to it as "re-tired-ment," you've got a real problem. Because one of you wants to get out there and live it up, and the other has no interest.
If this is your situation, there's a 50-50 chance mediation will work for you.
Half of the time, the passive party simply wants nothing to do with the divorce. And places the burden of getting a divorce on the active spouse. And since mediation requires two parties to actively participate, if this is your situation, mediation won't likely be a viable option for you.
But, there are passive spouses who fall into the "whatever you want" camp and will go along and work with you. So if this is your situation, don't rule out mediation for your no-fault divorce just yet.
3 Reasons Why Mediation is Your Best Option for a Gray Divorce
Now that I've shared the common gray divorce reasons, let's take a closer look as to why I feel mediation is the best way to divorce later in life if you're an older couple.
1. You Don't Want to Waste a Lot of Money on Your Divorce.
If you're like most men and women divorcing after a long-term marriage, you're in your late 50's to early 60's and may be out of the work force (or will be soon). So you don't have a lot of time to recover financially and protect your retirement plan if you spend a ton of money on your divorce.
Yet that's exactly what can happen if you don't mediate and involve attorneys instead.
To give you an idea:
- The average cost of a collaborative divorce is between $25,000 to $50,000; and that's if things "go well."
- The average cost of a litigated divorce is between $75,000 and $150,000; provided you can settle things in your first trip to court.
- If things aren't going well, and your divorce drags on for any period of time, you can expect to spend $200,000 or more on your divorce.
On the other hand, the average cost of a mediated divorce is between $5,000 and $9,000.
Given where you are in life, I'd imagine you'd rather fund your own retirement account instead of your family law attorney's!
2. You Don't Want to Waste a Lot of Time on Your Divorce.
Let me be clear. I am not encouraging you to rush through your divorce.
But the simple fact is when attorneys are involved, the divorce process is not only more expensive, but can take a very long time.
All that letter writing, e-mailing, phone calling, arguing and back and forth.
- The average length of a collaborative divorce is 8 months to 1.5 years.
- The average length of a litigated divorce is between 2 and 3 years.
The average length of a mediated divorce is only 4 to 5 months from start to finish.
Do you really want to spend your life in a courtroom or divorce attorney's conference room wasting years hashing out alimony (also known as spousal support, maintenance or spousal maintenance, depending on where you live), division of marital property and other details of your divorce?
Or would you rather get through this painful chapter in your life and spend the time you have left living?
3. You Don't Want to Add Any More Stress to Your Already Stressful Life.
At this stage of your life, you've probably got a lot of challenges and worries.
Some might be:
- A demanding job that requires 60 to 80 hours of your time per week;
- College tuition bills that collectively cost more than your house;
- Aging parents who require more and more of your care and attention;
- Children who boomeranged back home, unable to find a decent paying job;
- Skyrocketing health insurance premiums and medical issues that require more to address than just "taking it easy."
And now you're adding a divorce into that mix.
Even if you're the initiator, divorce is one of the most stressful events you will ever have to endure in your life. Second only to the death of a parent or loved-one.
So why then would you choose to involve divorce attorneys and pile even more stress on to an already unpleasant situation?
With the potential for years of:
- Letter writing;
- Phone calling;
- Motion filing;
- Document subpoenaing;
- And mounting legal bills that can escalate into the tens or even hundred of thousands of dollars;
A litigated divorce process using divorce lawyers is the epitome of stress vs. mediation which is a more peaceful process.
7 Critical Gray Divorce Issues to Watch Out for
No matter why you're seeking a divorce later in life, the fact is the longer a couple is married, the more complex the issues surrounding their divorce will be.
Here are 7 critical gray divorce issues and financial challenges that - if you're not careful - can really de-rail your divorce:
Issue #1: Determining an Amount and Duration of Alimony
Chances are the person paying alimony is late in their career. And their compensation is far more complex than when they first started out.
- Restricted stock units;
- Ownership stakes;
- Executive compensation packages;
- Car allowances;
- Travel perks;
So when determining an amount of alimony in a long-term marriage, the total compensation a spouse receives needs to be taken into account.
Not just their base salary.
Issue #2: Determining the Value of Premarital Assets (and Liabilities) or Proving Separate Property vs. Marital Property
In New Jersey, Illinois, Pennsylvania, New York and 37 other states, dividing a couple's marital assets and liabilities falls under the concept of equitable distribution. While in California and nine others, the concepts of community property are applied.
Say you live in an equitable distribution state, you're 63, got married at 36 and have this 401(k) that you've been contributing to since you were 25. Do you really have the statements from the day you got married to know what it's pre-marital value is?
Or you live in a community property state and have owned a baseball card collection from before you were married which has appreciated significantly over the years. Can you prove this is separate property and shouldn't be included in the division of your marital assets and liabilities?
Because you could be giving away pre-marital property or separate assets your soon-to-be ex-spouse is not entitled to.
Issue #3: Inheritances
Inheritances are considered "separate property" and are typically not subject to distribution in a divorce. But they can most certainly have a tremendous impact on your divorce settlement and finances.
One way is if they're co-mingled and turned into marital assets. That can be done in a number of ways far too numerous to get into here. A second way is how an inheritance impacts the division of your marital assets and liabilities.
For example, let's say the division of your assets and liabilities turns out to be 50-50. With each of you receiving half of the retirement assets. But your spouse inherited a $500,000 lump sum from their now-deceased parents. So was your distribution really 50-50?
On one hand, the marital assets subject to distribution were split equally. But the reality is your total asset pool is not 50-50. And does income earned from investing that inheritance count towards a person's ability to pay or receive alimony?
As you can see, gray divorce issues for an older couple can get quite complex.
Issue #4: Social Security
You may have heard that when spouses in long-term marriages divorce, one party can collect Social Security off of the other party's earnings.
So now you're in negotiations on alimony. And you're the one set to receive it. So you figure since you'll be getting $X amount per month in Social Security, you agree to take a lower alimony amount. Only to find out after your divorce is final, you don't qualify to receive benefits from your ex-spouse's earnings.
And now you're out of luck and so are your finances.
Issue #5: Life Insurance
Most people don't know this, but anyone paying alimony is required to have life insurance in an amount and for a term equal to the amount and duration of alimony agreed to in their divorce decree.
So now you're 58 and your term life policy is about to expire.
Well guess what?
You need to get a new policy with a death benefit and duration to cover your alimony obligation.
I just got my life insurance renewal today and it told me that if I decide to renew my policy when I'm 58, my annual premium will be $21, 358.
I can hear you saying, "So you mean to tell me I not only have to pay alimony, but I also have to fork over copious amounts of cash to an insurance company?"
Issue #6: Difficulty Dividing Pension Plans or Other Retirement Accounts
While many companies are moving away from pension plans in favor of 401(k)'s, state and local governments still offer pension plans to their employees. So if your spouse is a teacher, firefighter, police officer or government official, chances are they have a pension.
And it's probably quite substantial.
Now that you're divorcing, how do you divide such an asset? It's not like there's money sitting in an account as with an IRA or 401(k).
A pension is a promise made by an employer to provide an employee a monthly payment (typically) until they pass away.
Notice nowhere in there does it say "provide an employee's ex-spouse a monthly payment."
For corporate pension plans, it's a bit more straightforward. Do a PV calculation, determine the Coverture Fraction, get a QDRO, and a separate interest can be created and the pension benefit shared between the parties.
But when it comes to government pensions, it's not nearly as straightforward. So if your spouse was a civil servant or government employee, be aware that it may not be as easy to value and share a pension as it would be if they worked in a corporation.
Issue #7: College
In some states where we practice, divorcing parents are required to pay for their children's college education through child support. Yet, if you remain married, there is no such requirement of you.
Maybe you're one of the fortunate few who've managed to put away enough to fund their children's college education(s). But if you're not, your retirement may be further away than you'd like it to be.
Bonus Issue: The Most Important of All Grey Divorce Issues!
As you just learned, gray divorce issues for older couples are far more complex than the ones a young or newly married couple will face. And if you're not careful, your divorce can become a disaster!
That's why the most important of all gray divorce issues is choosing the right divorce professional.
Choosing the right divorce professional (divorce mediator) is critical to getting a divorce outcome that's fair, cost-effective and timely.
You can leave your future in the hands of divorce attorneys and waste up to $200,000 and 3 years of your life arguing as enemies, only to be forced to accept an agreement forced upon you by a judge and that neither of you is happy with.
Or you can choose to mediate your divorce, preserve your valuable time and money and work together as adults to craft an agreement you both have a say in and find fair and equitable.
When you really think about it, the choice is clear: mediation is the best way to get a gray divorce.
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