In Indiana and throughout the country, a new trend in divorce is gaining steam. The divorce rate among people over 50 is climbing as more and more couples married 25 plus years decide to call it quits. The gray divorce is happening at a somewhat alarming rate in some areas.
The implications and complications of this type of divorce may have far-reaching consequences on both people and their families.
Division of wealth gets complicated
Two people together for a quarter of a century or more in some cases may have acquired some serious wealth. While the assets were always meant for both spouses in their retirement years, splitting them up may wind up leaving one of them with a little less of a cushion. Indiana is an equitable division state, which means assets and debts get divided up relevant to each person’s contribution to the marriage. If one spouse stayed home to raise kids and support the other spouse, the judge will consider this as a determining factor in distribution. However, that does not mean that the stay-at-home spouse will receive the amount he or she should for all the behind-the-scenes work.
Health insurance coverage is not a given
When a couple divorces, no matter the age, if one gets coverage under the other’s health insurance, that coverage will end shortly after the divorce finalizes. The uncovered spouse has time to either get his or her own coverage or decide to pay the COBRA to continue the same. Insurance premiums may hold some weight in financial negotiations during divorce.
One spouse may draw on the other’s Social Security
Once a former spouse reaches retirement age and is eligible to draw on Social Security, the other too can draw on it. If one spouse’s benefit is more than the other’s, he or she can take up to 50 percent of it so long as the marriage was 10 years or longer in duration.
Divorce at any age is tricky, as each stage of life brings unique and messy factors. Getting divorced over the age of 50 is no different. Knowing what to expect can help ease the tension and stress such a life-altering event can cause.