Even spouses married for many years might see their marriages come to an end, and older couples could go through a previously unexpected “gray divorce.” Divorce at any age comes with legal concerns and financial responsibilities, but couples age 50 and over might have additional issues to deal with. Older persons seeking a divorce in Maryland may wish to avoid overlooking certain relevant issues.
Older spouses and alimony payments
When older couples divorce, inequities might exist regarding the ability to earn a living. One spouse may have greater earning potential due to more education or working in a more lucrative career. Therefore, one spouse might need to procure a reasonable – if not substantial – alimony amount. Alimony could be essential for an older spouse with limited career options or near retirement age.
Additional concerns might arise for the person paying alimony since the payments are no longer tax-deductible. However, the person receiving alimony no longer has to treat them as income for tax purposes.
Further financial concerns with gray divorces
Various other financial concerns arise, and a gray divorce might lead some to look at the fiscal aspects of an estate plan. Making changes to an estate plan might become a priority before, during, and after the divorce. Leaving an ex-spouse as the beneficiary of all one’s assets might be illogical when the person has already received a substantial divorce settlement. Yet, some may put off estate plan revisions, leading to potentially disastrous situations.
Both spouses may need to think clearly about post-marriage life. Putting together a proper budget might need to be a top priority. After decades of pooling resources, living on one income may require an adjustment period. Failing to budget properly could make things harder as time passes.