All the recent data shows that divorce in mid-life is on the rise, and with these divorces come issues that younger divorcees do not have to contemplate. Retirement is much nearer on the horizon, health care is a more prominent concern, and assets may be much more intermixed. While child custody is probably not going to be an issue, adult children can still complicate matters, especially if their inheritances are involved. If you are looking at a divorce later in life, or are simply considering it, it will be vital to understand what this process could entail for you. This article can only provide a brief overview, so be sure to consult an experienced divorce lawyer as soon as possible.

A More Complicated Division of Assets

While property division is an aspect of any divorce, couples divorcing after 50 often have to sort through a more complex version of this process. Retirement is no small reason for this added difficulty. But as with most divorces, holding onto the house will probably still be the main concern, but for different reasons, which can include:

• Qualifying for tax exemptions or waivers for real estate, based on age
• Tax deductions for mortgage interest
• The opportunity to generate income from renting out the house
• Eligibility for a reverse mortgage starts at 62 years old
• Primary residences are important in applying for public benefits (including Medicaid)

These special reasons are on top of the normal rationales for wanting to be the one who keeps the house, such as having equity and holding onto something with emotional value. But then, there are retirement accounts on the table as well, which represent liquid assets that may be more important for your future than a place that could require pricy repairs and upkeep. Some of the special issues involved with this division include:

• How can you evade a tax penalty when you withdraw funds?
• Is a hardship withdrawal an option in your case?
• Are you eligible for survivor benefits once the divorce is finalized?
• Do you still qualify for a military Survivor Benefit Plan?
• Are there loans against a 401(k) plan to pay off before splitting these assets?

If you are going to split the funds in your retirement plans, then you will probably need a Qualified Domestic Relations Order (QDRO), which is required under federal law to order how a pension or retirement benefits will be split.

Social Security Benefits and Late-Life Divorce

These are not assets that you can split up in a property division settlement, and in fact, they will not enter into your divorce decree at all. But it is imperative that you understand the impact of a divorce on your Social Security benefits.

Were you married for 10 years or longer? Are you 62 years old or more? Then you are still entitled to collect benefits based on your ex's Social Security record while still leaving their benefits intact. To be more precise, you might be able to collect up to half of your ex's benefits, a collection you can start when you turn 62. Then you can change to collecting your own benefits once you fully retire, or you can start with your benefits and then collect your ex's benefits upon retirement. Once you hit retirement age, you would switch to the records that provide the higher benefits.

What about survivor benefits? You can receive full survivor benefits, that is, 100 percent of your ex's benefits, if you were married for a minimum of 10 years, you are no less than 60 years old, and you are not owed other retirement benefits worth the same amount or greater than these survivor benefits.

Health Care Issues

A key element of the so-called "gray divorce" is health care. If only one spouse gets health care insurance from work, then a divorce could jeopardize the other spouse's coverage, a particularly serious matter if the uninsured spouse is struggling with a medical condition. If you cannot find an individual health care plan, then you could look into whether you are eligible for COBRA coverage, Medicare, and other plans or programs in your state.

Divorce and Your Estate Plan

You may have to go through your estate planning documents, including any life insurance policies, wills, and trusts, in order to perhaps revise terms. If you and your soon-to-be ex want to secure funds for your adult children or grandkids, you can use your divorce settlement to create trusts to pass down assets to your kids or fund your grandchildren's schooling, for example. In this way, you could ensure that gifts and inheritances are unaffected by the divorce.

If you need legal counsel for a divorce, or if you want to learn about the legal alternatives to filing for a divorce, contact an experienced family attorney on our directory today!