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Over the last 20 years, divorce rates in the U.S. have declined. One notable exception to this trend is couples over the age of 50; one in four marriages for those in this demographic now end in divorce. You will often hear the term "Gray Divorce" referring to those whom are over 50 years old and are going through a divorce. Financial concerns loom large in divorces after 50. Many spouses fear an inability to recover losses associated with the division of community assets, and this fear is compounded by the high cost of single living. Other financial concerns include:
- What to do with the family home;
- Potential losses in health care coverage;
- Social Security considerations; and
- Division of retirement accounts.
Splitting a 401(k) Plan in a Divorce
The 401(k) is one type of retirement plan that can be split between spouses. However, only the portion of the plan demonstrated to be community property is subject to division. Contributions of separate property to retirement plans will complicate the division process. If you are over 50 and contemplating divorce, it may be best to contact a board certified family law attorney who can help you create a secure post-divorce position.
