While divorce rates have declined overall, the rate for people over the age of 50 has more than doubled between 1990 and 2010. Many baby boomers are now facing divorce after decades of marriage — a trend often referred to as “gray divorce.”

Whether you are ending a marriage after 30, 40, or even 50 years, a gray divorce comes with distinct challenges compared to divorces in your 30s or 40s. If you are considering a divorce later in life, call an experienced gray divorce attorney at DM Cantor’s Family Law Practice (currently known as Cantor Law Group) in Phoenix, Arizona.

What is a Gray Divorce in Arizona?

Definition:

A gray divorce occurs when both spouses are over the age of 50. These divorces are becoming more common as a significant portion of the U.S. population ages.

Process:

While the legal process for dissolving a gray marriage is the same as for any other divorce, reaching a settlement can be more complex because each spouse typically wants to:

• Protect their financial security
• Safeguard their retirement resources
• Ensure they can maintain a comfortable standard of living in later years

Why Gray Divorce Can Be More Difficult:

Divorcing later in life often presents unique financial and emotional challenges. Beyond separating emotions from the legal process, there are specific financial repercussions that may not arise in younger divorces — and these can significantly affect each party’s future stability. Here are some of the reasons why divorce over 50 can be harder on both parties:

Your Income Has Diminished

While dividing assets is a standard part of divorce proceedings, it can create unique financial challenges for couples divorcing later in life.

In your senior years, your ability to earn an income is often reduced or gone entirely. When you no longer have significant earning potential, splitting assets — along with dividing a fixed income — can have a far greater impact than it would during your working years.

For many individuals over 50, retirement savings, Social Security benefits, and other fixed resources are the primary means of support. Divorcing at this stage can put you at risk of financial instability, making it harder to cover daily expenses and maintain the lifestyle you’ve been accustomed to.

Arizona Gray Divorce Attorney

Divorce among older adults — often referred to as “gray divorce” — is becoming increasingly common. If you are in Arizona and considering a gray divorce, it is essential to work with an attorney who understands the unique complexities involved.

An experienced Arizona gray divorce attorney can:

• Guide you through every step of the divorce process
• Help you obtain a fair and equitable settlement
• Ensure your legal rights and financial interests are protected
• Provide customized legal solutions tailored to your specific needs and goals

Because gray divorces often involve substantial assets, retirement funds, and complex property division, choosing an attorney with extensive experience in this area is critical. You want someone you can trust to act in your best interests and to provide compassionate yet effective legal representation.

Your Arizona Tax Filing Status Will Change

Many people delay withdrawing from retirement funds until they are in a lower tax bracket, often on the advice of financial advisers. However, these advisers may not account for the tax consequences of changing your filing status from married to single after a divorce.

In your senior years, filing as a single individual can place you in a higher tax bracket even if your income is lower, increasing your overall tax burden. Additionally, you may face tax liabilities when retirement accounts are divided and funds are transferred between spouses as part of the asset division process.

At DM Cantor’s Family Law Practice (currently known as Cantor Law Group), our family law attorneys can structure divorce orders in ways that may help minimize or potentially avoid tax repercussions related to property division and retirement account transfers.

However, because we are not tax attorneys, we recommend consulting with a qualified tax attorney to ensure you fully understand and address the tax implications of your gray divorce.

How to Protect Your Finances When You Are Going Through a Late-in-Life Gray Divorce

Understanding the unique challenges of a gray divorce is only the first step. The next is to protect your finances and avoid costly mistakes so you can maintain stability and comfort in your single life.

Keep Cool When Discussing Marital Assets

When you marry, love and emotion are at the forefront. When you divorce, the process becomes a business transaction centered around money, property, and future financial security.

Letting emotions take control during asset division can make it difficult to negotiate objectively and may lead to poor financial decisions. Treat your gray divorce as a business deal — keep discussions focused on numbers and facts, not feelings.

Key Points to Remember:

• Stay calm and focused during asset division discussions.
• Avoid emotionally charged arguments that waste time and money.
• A calm approach can help you retain more of your assets in the long run.
• A fair financial settlement is essential for rebuilding your life after divorce at 50 or older.

At DM Cantor’s Family Law Practice (currently known as Cantor Law Group), our experienced gray divorce attorneys can guide you through the process, ensuring your emotions don’t overshadow your financial best interests.

Review Your Individual Debt and Your Shared Debt

In Arizona, a community property state, you can be held responsible for certain debts incurred during the marriage — even if they are not in your name. To avoid surprises during divorce negotiations:

• Run credit reports on both yourself and your spouse before filing.
• Identify all joint debts as well as debts solely in your spouse’s name.
• Clearly list which debts are marital and which are individual to ensure accurate division of responsibilities.

The last thing you want is to discover unexpected debt while negotiating your divorce settlement.

Analyze Marital Assets and Retirement Accounts

When preparing for a gray divorce, carefully evaluate the most financially beneficial settlement structure for your future.

Key Considerations:

• Lump Sum Payment: Offering a lump sum to your spouse may be advantageous if it is less than the long-term value of the assets they might otherwise receive.
• Trusts and Life Estates: In some cases, transferring assets into a family trust or life estate can be a strategic way to preserve wealth and provide for loved ones.
• Real Estate: If you share a home, consider whether keeping it makes financial sense. For many couples, selling the home is the better choice due to ongoing maintenance costs and the uncertainty of future value.
• Retirement Accounts: Division of retirement accounts should be handled carefully to avoid tax penalties.
  • Work with your attorney to prepare a Qualified Domestic Relations Order (QDRO) when splitting 401(k)s, pensions, or other qualified plans.

Proper debt review and asset analysis will help you enter negotiations with clarity and ensure you make informed decisions for your post-divorce financial future.

Think About the Effects on Your Children

If you are divorcing later in life, you have likely already discussed your estate plan and how assets will be distributed. A gray divorce can significantly impact these plans — and the inheritance expectations of your adult children.

You should:

• Consider both the emotional and financial effects of the divorce on your children.
• Communicate openly about how their inheritance could change.

Do Not Overlook the Importance of Health Care

As you age, health care becomes a critical consideration. Medical costs can quickly impact your financial future if you are uninsured or underinsured.

• Factor in long-term care needs during settlement negotiations.
• Understand the difference between legal separation and divorce when it comes to insurance coverage:
  • Divorce: You typically cannot remain on your ex-spouse’s health insurance.
  • Legal Separation: Health coverage can often remain in place if you are still legally married.

Choosing the right legal path can help preserve important benefits.

Gray Divorce in Arizona and Social Security

If your marriage lasted 10 years or more and your spouse is 62 or older, they may be entitled to spousal Social Security benefits, provided they are unmarried at the time they apply.

Key points to remember:

• Keep Social Security benefits in mind during settlement negotiations.
• These benefits can provide long-term financial support in retirement.
• Overlooking this factor can weaken your post-divorce financial security.

A gray divorce can create lasting financial consequences. By considering the impact on your children, your health care, and your retirement benefits, you can avoid mistakes that you may 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 prefer to settle your divorce without going to court, hiring a collaborative attorney can be a strong option. This approach allows both spouses to negotiate terms productively in a cooperative setting, avoiding manipulation or hostility. Collaborative divorce often leads to long-term harmony between ex-spouses and can benefit children by reducing conflict during and after the divorce.

1. Arizona Litigation Attorney

If you and your spouse cannot reach an agreement, your case may proceed to court. This is common when disputes arise over child support, spousal maintenance, or property division. An experienced Arizona gray divorce litigation attorney will:

• Gather and review all details of your marriage and divorce.
• Present evidence supporting your claims.
• Challenge the other spouse’s arguments when necessary.
• Utilize expert testimony if needed. 

1. Phoenix Legal Counsel

A lawyer can guide you through the financial and legal implications of your divorce beyond the courtroom. They can explain complex financial matters, provide clarity on Arizona family law, and help you make informed decisions. Choose an attorney with substantial family law experience for reliable advice throughout your case.

1. Phoenix Mediator

Mediation is often used before a divorce goes to trial. With the help of an experienced Arizona divorce attorney, you and your spouse can work toward a mutually acceptable settlement that addresses all key issues. This process can:

• Reduce costs and save time.
• Give you more control over the outcome.
• Minimize disputes and promote a more amicable post-divorce relationship. 

1. Arizona Board-Certified Family Law Specialist

Attorneys who are Board-Certified Specialists in Family Law bring extensive experience to all aspects of divorce, including:

• Child custody arrangements
• Prenuptial and postnuptial agreements
• Property division

Whether your case is resolved through collaboration, mediation, or litigation, having a skilled gray divorce attorney ensures that your rights are protected and your future is safeguarded.

DM Cantor’s Family Law Practice (currently known as Cantor Law Group) has four Board-Certified Family Law Specialists to address all of your legal needs. 

Gray Divorce Questions & Answers

Q: How Common Are Gray Divorces?
A: Gray divorce is becoming increasingly common. As of 2020, more than 25% of divorces involve couples over the age of 50.

Q: What Issues Should I Consider for My Long-Term Financial Well-Being?
A: Consider:

• How much you will need to live on during retirement
• The tax implications of any divorce settlement or asset division
• Whether you will need life insurance to protect your financial future or obligations

Q: What Resources Are Available to Help With a Gray Divorce?
A: There are several resources to help navigate the complexities of a gray divorce:

• Experienced attorneys with specific knowledge of gray divorce issues
• Financial advisors to assist with retirement planning, asset division, and tax strategies
• Therapists or counselors to help manage the emotional impact of the divorce

Contact Our Experienced Family Law Attorneys

If you would like to speak with our gray divorce lawyers and family law attorneys about your case, call us for a free consultation. We are available 24/7 at (602) 254-8880 or via our confidential email form.