A gray divorce, meaning a divorce between long-term spouses over the age of 50, comes with unique challenges that younger couples do not face when they decide to split up. In some ways, you may be in a better position to divorce now than you were 20 years ago. In other ways, a gray divorce can impact your finances more negatively.
Here are several financial concerns every man seeking a gray divorce should consider.
Determining the Duration and Amount of Alimony Payments
Men who are further in their careers may receive compensation in multiple ways: bonuses, options, ownership stakes, reimbursements, etc. When alimony is considered, the parties will need to take into account the total compensation instead of just going off of base salary. This is also the case when determining whether the other spouse is entitled to alimony. If your wife is compensated with any of the above in addition to her salary, that must be considered when comparing your financial situations.
Splitting Up Your Assets Fairly
In the state of New Jersey, marital assets must always be divided equitably during a divorce. Keep in mind that equally and equitably are two different things – you won’t always end up 50/50. If you have spent decades commingling assets with your spouse, it can be difficult to determine whether any are pre-marital property and how shared assets should be divided. Gray divorce couples must consider things like investments, inheritances, and retirement plans that you may have been contributing to prior to your marriage. A gray divorce lawyer in New Jersey will understand the process of dividing your assets and can tell you what to expect.
When spouses in a long-term marriage divorce, one spouse can often collect a portion of the others’ monthly Social Security benefits. It’s important to consider these benefits before agreeing to an alimony amount. If you are the spouse he will be paying alimony, do you need to consider that you will already be sacrificing part of your Social Security income. If you will be the payee of alimony, be sure that you do qualify to receive a portion of the benefits before you agree to a lower alimony amount.
Paying for Your Child’s College
In some cases, a divorced parent may be ordered by the court to contribute financially to their child’s college education. Even if you aren’t legally required to pay, your ex may request some sort of contribution. This is important to consider because it may push back your retirement date unless you account for this expense in other areas.
Are you overwhelmed by the idea of a gray divorce? When it’s time to leave your marriage, don’t let legal and financial fears stop you from splitting up. Contact The Micklin Law Group to make your gray divorce in New Jersey as stress-free as possible.