Divorce later in life is becoming more common. Research from the National Center for Family and Marriage Research shows that divorce rates for adults age 65 and older have significantly increased over the last several decades. These divorces, often called “gray divorce,” “late-life divorce,” or “silver splitters divorce,” involve financial and legal issues that differ significantly from those in earlier divorces.
After decades of marriage, dividing property is not the only focus. Couples must also untangle years of financial planning. They need to protect long-term retirement and ensure financial stability for both households. Businesses, retirement accounts, real estate, investment portfolios, insurance policies, and future support obligations are often deeply linked. Health insurance, Medicare planning, Social Security, and long-term care are also central concerns.
Why Divorce After a Long-Term Marriage Is Different
In long-term marriages, most major assets were built jointly over time. These may include:
- Individual Retirement Accounts (IRA’s), pensions, and government plans
- Family businesses and professional practices
- Real estate with substantial equity or a home equity line of credit (HELOC) obligations
- Investment and brokerage accounts
- Long-standing tax and estate planning structures
- Health insurance and long-term care coverage
- Life insurance policies with cash value
The legal framework may be familiar, but the financial stakes are often much higher.
Property Division in California
California is a community property state. In most cases, assets and debts acquired during the marriage are divided equally. This applies regardless of whose name is on the title or who earned the income. Inheritances and gifts may remain separate property unless commingled.
In long-term marriages, however, disputes often involve:
- Mixed community and separate property interests
- Business valuations and goodwill
- Date-of-separation disputes
- Retirement contributions made over decades
- Prior agreements and commingled assets
The challenge is not only identifying what exists but structuring a division that preserves long-term financial stability.
Retirement Accounts and QDROs
Retirement accounts are often among the most valuable marital assets. Even if an account is only in one spouse’s name, the portion earned during the marriage is generally community property.
Many plans require a Qualified Domestic Relations Order (QDRO), a court order that divides retirement benefits between divorcing spouses. QDROs are highly technical. They can affect taxation, distribution timing, and retirement planning. Administrative rules under the Employee Retirement Income Security Act (ERISA), a federal law, apply. Errors may cause unintended tax issues or delay funds. Divorce attorneys often work with specialized QDRO counsel and financial professionals.
The Family Home and Tax Planning
For many couples, the family home is a large part of the marital estate. Decisions about keeping, refinancing, buying out, or selling the home require careful financial analysis.
Tax timing is very important. Married couples may qualify for a $500,000 capital gains exclusion on the sale of their main home. A single person may only qualify for a $250,000 exclusion. Some couples delay finalizing their divorce until after selling the home to keep tax advantages. These issues should be reviewed by a Certified Public Accountant together with your legal advisor.
Spousal Support in Long-Term Marriages
In California, marriages of 10 years or more are long-term marriages. The court can retain jurisdiction over spousal support unless the parties agree otherwise.
This does not guarantee permanent support. Courts evaluate multiple factors, including:
- Length of the marriage
- Age and health of the parties
- Income and earning capacity
- Perquisites (perks), benefits in addition to wages and salary.
- Marital standard of living
- Contributions to the other spouse’s career
- Retirement income and assets
- Domestic violence issues (can reduce or bar support to an abusive spouse)
- New cohabitation of the spouse receiving support
- Impact of child support or disabled adult children
- Eligibility for Social Security benefits
- California courts recognize retirement at a reasonable age. Retirement does not automatically end support, but it may allow a modification based on lower income and new circumstances.
Health Insurance and Coverage Transitions
For people over 50, health insurance is a central concern.
Divorce may trigger time-sensitive transitions:
- Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage should be analyzed. COBRA is a federal law that allows individuals to temporarily keep their employer-sponsored health insurance after divorce, at their own cost.
Social Security and Medicare Considerations
Social Security and Medicare are federally managed. Their financial impact in a divorce can be substantial. Review these issues with legal and tax professionals. The Social Security Administration offers individualized estimates.
Social Security Benefits After Divorce
If a marriage lasted 10 years or more:
- A divorced spouse may claim up to 50% of the former spouse’s full retirement age benefit while the ex-spouse is living.
- If the former spouse dies, a divorced survivor may claim up to 100% of the deceased spouse’s benefit, including delayed retirement credits.
- Claiming benefits early can permanently reduce monthly payments.
- Delaying Social Security benefits until age 70 can maximize retirement income.
Medicare Planning
People should sign up for Medicare within 3 months of turning 65, even if delaying Social Security benefits.
The Importance of Coordinated Financial Planning
Later-life divorce often demands more than just legal help. Retirement planning, taxes, support, estate matters, and long-term health care often overlap.
At Feinberg & Waller, matters are approached with a focus on strategic planning, financial clarity, and long-term outcomes. The firm works with a network of CPAs, forensic accountants, financial advisors, and QDRO professionals. This is to help clients navigate complex life-transition planning in high-asset and long-term marriage cases