After decades of shared experiences, some couples discover that their paths have diverged, leading them to seek fulfillment independently. These couples often possess substantial assets, having accumulated wealth through years of hard work and, if prudent, wise investments. The financial landscape of a grey divorce can be complex, as it involves dividing not only tangible assets like property and savings but also those that are more difficult to value, like retirement funds and investment portfolios. Those who are going through this process are wise to learn the basics to better ensure a smooth transition to life after divorce.
What is unique about grey divorce?
Older couples accumulate assets over their lifetime. This can include business interests, real estate, retirement accounts, and investments. The division of these assets requires careful legal consideration. For those with business interests, for example, it is important to determine the fair market value of the business and decide whether to sell, divide, or continue joint ownership. Legal professionals often recommend hiring a business valuation expert to get an accurate assessment.
The process for real estate is similar, with a need to get a market value and decide the future of the property. It is also important to take into account potential tax implications if you plan to sell the home after the divorce is finalized as well as future maintenance costs.
It is also imperative to split retirement assets wisely. Remember, these assets have had decades to grow in value and it is difficult if not impossible to recoup these losses. Make sure any proposed division is fair and works for your future plans.
Are there any legalities that I should keep in mind when navigating a grey divorce?
Like any divorce, it is important to follow state law to navigate through the process. In addition to adhering to these legal requirements, those who go through a grey divorce should also revisit estate plans. Once the divorce is finalized it is wise to update wills, trusts, and beneficiary designations to reflect new circumstances.
Grey divorce presents unique challenges and legal considerations for older couples, particularly those with high assets. Understanding the complexities of business interests and multiple properties, along with retirement accounts and estate planning, is crucial. By seeking professional legal advice, couples can navigate these challenges effectively, better ensuring a fair and equitable resolution.