The terms ‘Silver Divorce’ and ‘Gray Divorce’ refer to cases in which the divorcing couple is near or beyond retirement. The issues facing these couples often differ from those who are twenty years younger. If you are getting a divorce in your 60’s or 70’s, it is important to explore the unique challenges you may face during the process.
Silver Divorce Property Division
First and foremost, couples in their 60’s have often owned their homes for many years and therefore have built up a significant amount of equity. This can complicate the process of property division in a silver or gray divorce.
For younger couples, the equity is not usually so great as to prevent one party from buying out the other. But for a couple with significant equity, a straight buyout would be impossible, if it were not for the availability of a Home Equity Conversion Mortgage (HECM).
We work closely with mortgage brokers who assist couples 62 and older in obtaining such a loan so that the moving party receives half the equity while the party staying in the marital home gets a significant break on the monthly payment.
Silver Divorce – Social Security
Another unique complication of silver or gray divorce is the division of Social Security benefits. While a couple in their forties is not likely to be thinking about social security, for individuals in their 60’s this is an important income stream.
Until Congress changes things, the rules are as follows: If you and your spouse have been married for more than ten years, and your spouse’s monthly Social Security income is significantly greater than yours, you can opt to collect half of your spouse’s Social Security each month rather than your own.
This does not impact your spouse’s monthly payment, which will remain the same whether you claim a portion or not. For a party who has been a homemaker for most of the marriage, this can make a huge difference in the ability to self-support post-divorce.
Silver Divorce – Alimony in Massachusetts
Another consideration for couples going through a divorce later in life is alimony. In Massachusetts, the state’s Alimony Reform Act eliminates the responsibility of the higher income earner to pay spousal support if the higher income earner has reached full retirement age. If the earned income of the two spouses is vastly different, this can be a huge issue.
Work With a Silver/Gray Divorce Lawyer in Massachusetts
Because silver/gray divorces come with their own unique considerations, it’s important to work with a Massachusetts divorce lawyer who has experience with the process.
At Newburyport Family Law, we are well versed in the rights and responsibilities of divorcing couples in their 60’s and 70’s and are able to assist those clients in reaching agreements that are fair and reasonable.
Explore our website to learn more about getting a divorce in Massachusetts, including options for divorce mediation or a collaborative divorce. Contact Newburyport Family Law to start the conversation today.