People who have been married a long time have often accumulated substantial assets and may be involved in complex financial interdependencies that can take time to unravel.
Divorce mediation is a non-adversarial divorce process that allows you to take into consideration future planning for retirement scenarios and other scenarios that affect people exiting a longterm marriage. If you are getting a California divorce, divorce mediation ensures that you can set up your own timelines for spousal support rather than being bound by the court’s rules about spousal support for long-term marriage. California and certain other states have rules that may set spousal support for a fixed period of time based on how long you have been married.
People getting a divorce after a long marriage are often high net worth couples who may or may not have children, and if they do, these adult children may be independent. Instead of child custody, negotiations could include estate planning for adult children for example. Issues revolve around how to have a fulfilling life, transition to financial independence, retirement planning, estate planning and longterm care planning.
Planning for a Fulfilling Life After Longterm Marriage
When exiting a longterm marriage, it is often better to invent your own rules to create the future that you want. If possible, this means avoiding an adversarial or litigated divorce, which could force you to split your assets in a way that may not suit your future plans.
Some of the complex issues facing couples dividing assets after a longterm marriage include splitting high value retirement accounts, planning for retirement, estate planning, planning for health issues, deciding what to do about real estate, and figuring out the best way to support each other in the future.
Spousal Support
Some couples choose to waive spousal support or give a lump sum instead of ongoing spousal support. If there is spousal support, but it is a lump sum, there may be tax consequences that are due when the lump sum is paid. Spouses may choose to set aside a portion of the assets for spousal support and categorize it as part of the divorce settlement, thus avoiding tax consequences. Assets within the marital estate can be marked for a spousal support buyout that transfers assets to a spouse incident to divorce, making them tax free. Some divorcing spouses choose to set up an alimony trust to administer spousal support longterm. The advantages of lump sum payments, asset transfers or lump sum alimony is that spouses get to walk away free of ongoing obligations to each other.
Retirement Accounts
Splitting retirement accounts is an important part of resolving a longterm marriage. There is a specific process for how retirement accounts must be split, which involves getting a court order to avoid penalties for withdrawing early. It’s important to consult a highly experienced professional West Coast Divorce Mediator who understands the process of obtaining a QDRO and can help you make important decisions about your retirement accounts.
Real Estate
A big decision facing anyone going through a divorce is what to do about real estate. A couple who have been married a long-time may have multiple properties in different states or even internationally. If you are getting a divorce after a longterm marriage you may be ready to downsize and live smaller. Selling real estate in divorce can introduce tax consequences. Consulting with an experienced divorce professional is a must.
Estate Planning
Estate planning is a big part of getting a divorce after a longterm marriage. It may involve providing for any children you have together. It is also important to ensure that you have agents named to manage your financial affairs and healthcare decisions. California divorce revokes your spouse’s power of attorney but you need to nominate someone new to take on that role. A California divorce does not revoke trusts that could be set up for a spouse. If one of you gets remarried your assets could go to that person, so if you have children, you may need to negotiate about estate planning and how it could impact your children.
Getting divorced after a longterm marriage is a big decision that will alter the course of your life. The popularity of the “grey divorce” has revealed that this is often a positive choice for people later in life. However, the transition needs to be managed carefully.
Getting a divorce over 50 means being intentional about what you want your future to look like. Divorce mediation is a non-adversarial process that can help facilitate ownership over your divorce. At Divorce Options San Diego, we are West Coast Divorce Mediators who help divorcing spouses manage the transfer and division of significant assets in divorce and plan for a thriving independent future. We use many tools to make the process easier, such as negotiation, mediation, fair division mathematics, all underpinned by legal and financial expertise. We often facilitate the divorces of people with international assets and homes, or bi-coastal residents. We do remote divorces via secure private server but we can also be consulted at our offices in San Diego, CA and Silicon Valley, CA. Please contact us to learn more about getting a respectful and intentional divorce for a longterm marriage.
