Gray Divorces In California: What Older Couples Should Know Before Splitting

As divorce among older couples becomes more common, many people wonder how the process differs later in life. While some aspects are simpler without child custody or current income to consider, there are still unique financial and legal issues that can come into play. This article explores…

• The biggest financial concerns for older couples who are divorcing.
• How assets, retirement accounts, Social Security, and spousal support are handled.
• What role your adult children may play in the process.

What Are The Biggest Financial Concerns For Older Couples Going Through A Gray Divorce?

In many ways, the financial issues are the same as in any divorce. But for older couples, there are often fewer moving parts: no minor children, no current employment income. The focus is usually squarely on dividing assets.

However, complications can arise if there are dependents involved. Many older couples are still helping adult children or even caring for grandchildren. Courts generally do not recognize these informal arrangements, so there won’t be custody orders or child support in such cases. Still, couples can agree to honor these responsibilities through private agreements or stipulations.

When it’s just two spouses with no dependents, the divorce process often comes down simply to dividing assets like a home, savings, or retirement accounts.

How Are Retirement Accounts Divided In A California Gray Divorce?

Retirement accounts are community property in California and must be divided during a divorce. The process is handled through a Qualified Domestic Relations Order (QDRO).

A QDRO allows retirement funds to be divided between spouses without penalties or tax consequences. For example, if one spouse has a 401(k) and the other an IRA, the accounts can be equalized so both parties hold a fair share of each.

Specialized firms, such as Moon Schwartz & Madden, prepare QDROs after the divorce judgment is signed. They calculate the division, draft the necessary legal language, and file it with the court. Once approved, the order is sent to the retirement account holders to implement the split.

What Happens To Social Security Benefits During A Senior Divorce?

Social Security benefits are handled differently from pensions or retirement accounts. They do not go through a QDRO. Whether benefits can be divided depends on factors such as the length of the marriage.

In long-term marriages, a spouse may be entitled to a portion of the other’s Social Security benefits. That said, couples often make their own agreements. For example, sometimes one spouse keeps Social Security while the other keeps more of the retirement accounts.

There are generally two types of senior divorces:

• Long-term marriages (think 10 years or more), where most assets are community property.
• Shorter-term later marriages, which may involve prenups or separate property issues.

Each situation is highly fact-specific, and determining what counts as community property versus separate property may require careful analysis.

How Is Spousal Support Handled In California Divorces When Both Spouses Are Retired Or Semi-Retired?

California distinguishes between long-term marriages (over 10 years) and short-term marriages (under 10 years) primarily for spousal support purposes. In long-term marriages, spousal support can be indefinite, continuing until remarriage, death, or sometimes a significant financial change. In short-term marriages, support often lasts about half the length of the marriage, but this can vary.

For older couples, spousal support questions hinge on whether either spouse has income or income-like assets. If both are retired and assets are accessible, courts may simply divide the property equally rather than order ongoing support.

What Steps Can I Take To Prepare For A Peaceful And Fair Senior Divorce?

Don’t let emotions derail the process. Divorce law is largely driven by rules and numbers. Asset division, in particular, often comes down to a straightforward spreadsheet with things like values at the time of marriage, separation, and today being the driver in determining the outcome.

Starting with what the law says provides a foundation. From there, spouses can negotiate if they wish, but courts will default to a fair division of assets. Preparing organized financial documentation can help keep the process efficient and less stressful.

What Role Might My Adult Children Play In My Divorce?

Adult children can play different roles in your divorce, depending on the circumstances. In some cases, your children may become deeply involved, especially if one parent has health concerns or diminished capacity. They may even hold power of attorney, allowing them to help make decisions.

In other cases, your children’s involvement is indirect. For example, if they live in a marital property that must be divided or sold. Questions such as whether they are tenants, whether they pay rent, and how long they intend to stay must be addressed.

Ultimately, each situation is unique. Adult children may support you emotionally or practically, but their legal role in the proceedings depends on the circumstances.

Still Have Questions? Ready To Get Started?

For more information on senior divorce in California, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (888) 456-2040 today.