Gray divorce generally refers to divorce among adults age 50 and older. Although divorce rates have declined among many younger age groups, late-life divorce has become considerably more common than it was several decades ago. For people approaching or already in retirement, divorce can also raise significant questions about retirement savings, real estate, investments, debt, alimony, and health insurance.

If you are considering divorce later in life, understanding those financial issues can be especially important because there may be less time to rebuild savings before retirement. A Tennessee family law attorney can help evaluate how property division, retirement assets, support, and other issues may affect your financial circumstances.

Increased Gray Divorce Rates

Researchers at Bowling Green State University’s National Center for Marriage and Family Research found that the divorce rate among adults age 65 and older tripled between 1990 and 2021, increasing from 1.8 to 5.5 divorces per 1,000 married adults. Among adults ages 55 to 64, the rate more than doubled over the same period. By contrast, divorce rates declined among younger age groups.

Why Has the Gray Divorce Rate Increased?

Researchers have identified several social, economic, and marital factors that may contribute to the long-term rise in divorce among older adults. The reasons can vary considerably from one marriage to another and may include:

• Increased life spans
• Reduced social stigma
• Higher divorce rate for remarriage
• Increased financial independence of women
• Impact of social media
• Empty nest

Increased Life Expectancy

Longer life expectancy is one factor researchers have identified as a possible contributor to gray divorce. Adults who reach their 50s, 60s, or beyond may still anticipate many years of life ahead, which can influence how they evaluate an unhappy or unsatisfying marriage. Although longer life expectancy does not itself cause divorce, it may affect the decisions some older adults make about remaining married later in life.

Reduced Social Stigma

Social attitudes toward divorce have also changed substantially over time. Research has found that older adults have become more accepting of divorce than previous generations, making divorce a more socially accepted option when a marriage is no longer working.

Tennessee also recognizes irreconcilable differences as a ground for divorce, so spouses may be able to end a marriage without proving marital fault when the applicable legal requirements are satisfied. Changing attitudes toward divorce, together with broader changes in marriage and family life, may help explain part of the long-term increase in gray divorce.

Women’s Increased Financial Independence

Women in earlier generations generally had fewer employment opportunities and lower rates of workforce participation than women today. Traditional family roles also more often placed primary breadwinning responsibility on husbands, which could leave some women with limited independent income if a marriage ended.

Over subsequent decades, women’s participation in the workforce increased substantially. Greater access to employment, retirement savings, and independent income may give some older women more financial ability to consider divorce than women in earlier generations had. However, gray divorce can still create serious financial consequences, particularly when retirement savings, housing, and long-term income must be divided between two households.

Changes in Long-Term Relationships

Relationships can change considerably over the course of a long marriage. Spouses may develop different interests, priorities, or expectations as they move through different stages of life. Research on gray divorce has found that marital quality and the length and history of a marriage can be associated with the likelihood of divorce later in life.

Major transitions such as children leaving home may cause some couples to reevaluate their relationship, but research has not found that becoming empty nesters independently increases the likelihood of gray divorce. The reasons for ending a marriage after age 50 vary from couple to couple and often involve a combination of relationship, financial, and personal circumstances.

Protecting Yourself in a Gray Divorce

Gray divorce can involve financial issues that may be especially important for people approaching or already in retirement. After a long marriage, spouses may have accumulated real estate, retirement benefits, investment accounts, and other significant assets. Those finances may also be closely intertwined, making careful identification, valuation, and division particularly important. An experienced divorce lawyer can help evaluate these issues under Tennessee law.

Marital debt also needs to be addressed. Tennessee courts allocate responsibility for marital debt based on factors including why the debt was incurred, which spouse incurred it, who benefited from it, and each spouse’s ability to repay it. Before negotiating property and debt division, spouses should identify outstanding debts, balances, account ownership, and payment obligations.

Dividing retirement assets can be particularly important in a gray divorce because both spouses may have fewer working years remaining to rebuild retirement savings. Different types of retirement accounts also require different procedures. Certain employer-sponsored retirement plans may require a qualified domestic relations order (QDRO) to award benefits to a former spouse, while IRAs generally use different transfer procedures. Because an incorrect withdrawal or transfer can create tax consequences, retirement assets should be addressed carefully as part of the divorce.

Alimony may also become an issue when there is a significant difference between the spouses’ incomes or earning capacities. For an older spouse who has been out of the workforce for many years, obtaining additional education or training may not be a realistic way to achieve financial independence. Tennessee courts consider factors including age, health, earning capacity, financial resources, length of the marriage, and the division of marital property when determining whether alimony is appropriate.

Health insurance is another important consideration, particularly when one spouse receives coverage through the other spouse’s employer and is not yet eligible for Medicare. Depending on the circumstances, options may include COBRA continuation coverage, other available health plans, or provisions addressing health-insurance premiums as part of the divorce.

Divorce near retirement can significantly change both spouses’ financial outlooks. Developing a post-divorce budget can help identify expected changes in housing costs, health insurance, debt payments, retirement income, taxes, and other expenses and provide a clearer picture of what retirement may look like after the divorce.

Contact an Experienced Divorce Attorney

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