Divorce after age 50 has become increasingly common, even as divorce rates have declined among some younger age groups. Researchers often refer to divorce among adults 50 and older as “gray divorce,” and recent research indicates that nearly 40% of people getting divorced in the United States are now age 50 or older.
For couples in Chicago who have been married for decades, ending a marriage at this stage of life presents concerns that may be very different from those facing younger spouses. Retirement accounts, pensions, real estate, investments, maintenance, health insurance, and future income can become central issues. We help clients in Chicago evaluate not only what they may receive in a divorce, but also how each decision may affect their financial security during retirement.
Why Gray Divorce Is Becoming More Common
There is rarely one reason why a couple decides to divorce after decades together. Some spouses discover after their children leave home that they have grown apart. Others reach retirement and realize that they have very different expectations about how they want to spend the next stage of their lives. Financial disagreements, changing priorities, remarriages, health concerns, and longstanding marital problems can also contribute.
The trend itself is significant. Research from Bowling Green State University found that the divorce rate among people age 50 and older doubled between 1990 and 2010, while gray divorces now account for close to 40% of divorces.
Illinois does not require either spouse to prove adultery, abandonment, cruelty, or other misconduct to obtain a divorce. Under 750 ILCS 5/401, Illinois courts may dissolve a marriage when irreconcilable differences have caused its irretrievable breakdown and efforts at reconciliation have failed or would not serve the family’s interests. This means spouses who have simply reached the point where their marriage cannot reasonably continue may pursue a divorce without attempting to assign legal fault.
Dividing Decades Of Marital Property
Property division can become particularly important in a gray divorce because a couple may have accumulated assets throughout 20, 30, or even 40 years of marriage.
Under 750 ILCS 5/503, property acquired by either spouse after the marriage and before the divorce judgment is generally presumed to be marital property unless it falls within a statutory exception. Illinois law specifically recognizes pension benefits, defined benefit plans, defined contribution plans, IRAs, and certain other retirement benefits accumulated during the marriage as potentially marital property.
Illinois follows equitable distribution rather than requiring an automatic 50-50 division. The court considers statutory factors when allocating marital property, including the duration of the marriage, each spouse’s contribution to acquiring and preserving property, the value of property assigned to each spouse, economic circumstances, age, health, income, employability, and future opportunities to acquire assets.
For older couples, these factors can carry substantial weight because there may be less time to replace assets lost through divorce.
Retirement Accounts And Pensions Require Careful Attention
Retirement assets are frequently among the largest assets involved in a long-term marriage. A spouse should not assume that an account belongs entirely to the person whose name appears on it.
If retirement benefits were earned during the marriage, the marital portion may be subject to division under 750 ILCS 5/503. Depending on the type of plan, dividing retirement benefits may also require additional documentation or a specialized court order to implement the divorce judgment.
We examine when retirement contributions were made, whether any portion predates the marriage, whether pension benefits have already begun, and how the proposed allocation could affect each spouse’s retirement income. An apparently equal division of assets may not produce equal financial results when taxes, liquidity, investment characteristics, and future income are considered.
Spousal Maintenance Can Become A Major Issue
Maintenance can take on increased importance when spouses divorce later in life, particularly after a lengthy marriage in which one spouse earned substantially more than the other.
Illinois maintenance law is governed by 750 ILCS 5/504. Before awarding maintenance, a court considers factors including each party’s income and property, needs, earning capacity, impairment of earning capacity caused by domestic duties, age, health, duration of the marriage, standard of living during the marriage, and other relevant circumstances. Marital misconduct is not the basis for determining maintenance entitlement.
For someone nearing retirement, returning to the workforce or substantially increasing earnings may be unrealistic. We therefore look closely at the client’s expected income, retirement benefits, expenses, assets, and long-term financial needs before evaluating possible maintenance arrangements.
Maintenance may also later be subject to modification or termination under circumstances permitted by 750 ILCS 5/510.
The Marital Home May Carry Financial And Emotional Value
Long-married couples often have significant equity in their Chicago residence. One spouse may strongly want to remain in the home, particularly if it has been owned for decades.
Keeping a house, however, requires more than determining who wants it. We consider the home’s equity, mortgage obligations, property taxes, insurance, maintenance costs, and whether the spouse retaining it can realistically afford those expenses after divorce.
Sometimes selling the property and dividing the proceeds provides both spouses with greater financial flexibility. In other cases, one spouse may retain the home while the other receives different marital assets as part of the overall equitable distribution under 750 ILCS 5/503.
Financial Planning Matters More When Retirement Is Close
A person divorcing at 30 may have decades to rebuild retirement savings. Someone divorcing at 60 may not.
That difference changes how we evaluate settlement proposals. A client may need to consider retirement income, investment assets, housing costs, insurance expenses, debt, taxes, and expected future earnings before agreeing to divide property.
Our goal is not simply to obtain assets on paper. We want our clients to understand how the proposed divorce settlement may function in their actual lives after the case ends.
Speak With Michael C. Craven About A Gray Divorce In Chicago
A divorce after age 50 can affect decades of savings and the financial security you expected to rely upon during retirement. Decisions involving pensions, retirement accounts, maintenance, real estate, investments, and other property should be made with a clear understanding of Illinois law and the long-term consequences.
Michael C. Craven represents individuals facing divorce throughout the city of Chicago, Illinois. If you are considering a gray divorce, have been served with divorce papers, or need guidance concerning property division, retirement benefits, or maintenance, contact our Chicago divorce attorney today by calling (312) 621-5234 to schedule a free consultation.
The post Gray Divorce: Why More Couples Over 50 Are Divorcing first appeared on Divorce Attorney in Chicago.