Gray Divorce and Alimony

Divorce can be a challenging experience no matter how old you are. However, for couples over 50 this can be especially difficult given the societal expectation that those married for several decades will stay married. Gray Divorce, divorce later in life, has become more common in the U.S. over the last several years. While the divorce process doesn’t change based on how old you are, divorcing later in life raises unique questions and challenges when it comes to alimony, retirement, and other financial matters.

If you’re currently navigating a Gray Divorce in Massachusetts, here’s what you need to know.

What is Gray Divorce?

“Gray divorce” refers to older couples, typically aged 50 and above, ending their marriages. This term has gained popularity as divorce rates among this demographic have risen in recent decades.  Bowling Green State University’s National Center for Family and Marriage Research found that, for people 65 and older, the divorce rate tripled from 1990 to 2021. Older couples divorce for a lot of the same reasons that younger couples might: financial disagreements, infidelity, etc. Empty nest syndrome can also highlight problems within the marriage where spouses find themselves focused back on their relationship rather than raising their families. While many couples going through Gray Divorce may be ending a decades-long marriage, Gray Divorce also encapsulates shorter-term second or third marriages that may have been entered into later in life. 

Financial Consequences of Gray Divorce 

Gray Divorce has unique financial consequences that differ from divorces occurring earlier in life. With retirement on the horizon or already in progress, financial stability is paramount. Divorce at this stage can significantly impact retirement savings, income streams, housing, healthcare costs, and overall financial security. Unlike younger couples who have time to rebuild wealth through prime working years, older divorcees face challenges in maintaining their standard of living and adjusting to a single-income lifestyle. 

The consequences of Gray Divorce can be more financially challenging for women. Studies have shown that women’s household income post-divorce can drop up to 40%. Regardless of gender, financial planning for a non-working or lower income spouse is going to be especially important.

Alimony and Gray Divorce

Alimony, or spousal support, is a court-ordered payment designed to help a lower-earning spouse maintain financial stability after divorce. Courts may award different types of alimony based on the circumstances. 

• General Term Alimony- Provides ongoing payments based in the recipient’s financial need, ensuring that their standard of living is not affected
• Rehabilitative Alimony- Temporary support to help a spouse become self-sufficient (higher education, job skills classes etc.)
• Reimbursement alimony- Compensation given for one spouse’s financial contributions made during the marriage to further the other’s career or education
• Transitional Alimony- Short-term payments to help a spouse adjust to life post-divorce such as for relocation or lifestyle changes 

In deciding how much alimony to award, courts consider factors like marriage length, spouses’ ages, health, incomes, and employability. They examine financial and non-financial contributions, the marital standard of living, and post-divorce sustainability. Lost economic opportunities, such as career sacrifices, also influence alimony decisions.

One thing that older couples in Massachusetts who have been married for a long time should note is that Massachusetts has different time frames for general alimony which correlate to the length of the marriage. For marriages lasting 5 years or less, alimony cannot exceed 50% of the duration of the marriage. However, for marriages lasting more than 20 years, the court has full discretion to determine a fair and appropriate alimony period based on the circumstances.

That is good news for an older spouse who was in a long marriage and does not have the career skills or faces age discrimination. These terms of general alimony allow them to make up for the lost income that their spouse provided. But just because alimony is ordered does not mean that the spouse ordered to pay it will pay it. Sometimes, spouses willfully do not pay alimony. In that case, the spouse can face a contempt charge. But sometimes, especially as spouses age, maintaining alimony payments can become challenging. This is especially true if the paying spouse retires or experiences a significant income drop that can cause a reduction or termination of alimony.

For the spouse receiving alimony, there is always a risk that payments will be reduced or terminated over time. Massachusetts allows for modifications based on changes in financial circumstances, which means alimony could decrease if the paying spouse retires, loses income, or suffers financial hardships. Another reason for a modification is health issues. Older divorcees–like any older Americans–are more likely to suffer from health issues that impact their ability to earn an income.

Ways For Older Divorcees to Protect Themselves Financially 

One way that older divorcees can protect themselves financially is to have signed a prenup. A prenuptial agreement, or “prenup,” is a legal contract entered into by two people before they get married. It outlines how their assets and debts will be divided in the event of a divorce, separation, or death. Prenups can also address issues such as alimony.

If you didn’t sign a prenup, don’t worry. You can still protect yourself by signing a “postnup.” A postnuptial agreement is similar to a prenuptial agreement but is created after the marriage has already taken place. These can be extremely helpful in gray divorces where there are:

• Significant retirement savings
• Real estate or business interests
• Significant wealth and inheritances 

They are especially useful when one spouse has sacrificed a career for the marriage or when blended family financial interests are involved. In almost all cases, a postnup can help you avoid costly litigation down the road.

Contact an Experienced Massachusetts Divorce Lawyer

Given the complexities of gray alimony, including potential modifications due to retirement or financial changes, consulting an experienced alimony attorney is essential. An alimony attorney can help navigate legal options, ensure fair financial arrangements, and protect long-term financial stability. If you are facing a gray divorce and have concerns about alimony, get in touch with an attorney who understands alimony and can help you understand your rights and obligations under the law.