611 Druid Rd E • Suite 105 • Clearwater, FL 33756 • 727.441.9022
Meridian One Building • 4350 West Cypress Street • Suite 225 • Tampa, FL 33607 • 813.405.4846
The ProVise Advisor Team
NO BLACK AND WHITE IN GRAY DIVORCE
Gray divorce, also referred to as “silver splitter”, is an increasing
phenomenon among those over the age of 50. According to the
National Center for Health Statistics, the rate of divorce over
the age of 50 is 10 out of 1000, double the rate in 1990 and for
those over age 65 it has tripled. Any divorce is complicated but
divorcing a long-term partner is particularly fraught with issues,
both financial and emotional.
What are some of the causes of gray divorce after decades
of life together? While affairs happen, they are not the leading
cause. With more families having both spouses working, financial
independence is generally greater. Society does not frown on
divorce in a way it once did. Many are just looking for something
more out of life and their relationships. Given greater longevity
they feel they still have a lot of life in front of them.
When we work with clients or prospective clients going through
divorce, it is without judgement. There are almost always two
sides. We encourage them to seek out attorneys and other
professionals who believe in the collaborative divorce process
to help control legal costs and emotional trauma.
Still there are significant financial issues that must be decided
in an equal and equitable manner. What is the difference? Assets
can be split 50/50 and that is equal, but if some assets have a
higher tax burden than others, it might not be equitable.
Alimony is one of many issues which come with any divorce,
especially if one spouse is financially dependent on the other.
The non-employed spouse may not be trained and/or older age
may make it difficult to find a job. Will alimony last a lifetime,
for a certain number of years, or perhaps to a stated age?
The longer a couple is together the more entangled the financial
matters become. Front and center is the issue of health care,
especially before Medicare kicks in at age 65. Even then, health
care is an expensive proposition. Who will pay the premiums
and for how long? If the marriage has lasted more than ten years,
About ProVise Management Group, LLC: ProVise is a financial planning and investment management firm registered with the Securities and Exchange
Commission (SEC) and has been in business since 1986. Our 15 professional advisors serve approximately 1100 clients in over 30 states. As of 9/30/2020 we
were managing approximately $1.51 billion for our individual, corporate, not-for-profit and 401k retirement plans. Please visit our website at: provise.com.
Investment Advisory Services offered through ProVise Management Group, LLC. The information herein is general and educational in nature and should
not be considered legal or tax advice. Tax laws and regulations are complex and are subject to change.
90 TAMPA BAY MAGAZINE | JANUARY/FEBRUARY 2021
each spouse can choose a Social Security benefit on his or her
own record, or that of the former partner, whichever is greater.
How will each fund their respective retirements? They do not
have time to make up for lost time and savings. If one retirement
account is larger than the other, then it could take a Qualified
Domestic Relations Order (QDRO) to separate these assets
without tax consequences.
What about all those other assets they have accumulated? The
primary home? Maybe a second home, boat, or RV? Artwork?
Jewelry? Long-term illiquid investments? Life insurance?
Annuities? Then, there is the other side of the balance sheet
-debt. Who will be responsible for the mortgage(s), credit card(s),
auto loan(s), personal debt, etc.?
The estate plan will need to change. Most likely each named the
spouse as the executor of the will, the successor trustee on the living
trust, on the power of attorney, and on the health care surrogate.
He/she is probably also the beneficiary on the life insurance,
retirement plans, annuities, etc. All this needs to be changed.
The emotional toll on a couple who have been together for
decades is a whole other issue. They may have been deeply in
love at one point, but then they were not. Being and living alone
is not healthy and it can be a challenge in many respects. While
the divorce ends the marriage, it does not end the emotional
aspects. Will they find other life partners…do they want one?
They should not hesitate to put a phycologist on the team.
Oh my! Then there are the adult children, grandchildren, other
family members, and friends. Can they come to grips with the
divorce? Will they make a choice and choose sides? Can they
possibly understand? Will they forever look at those involved
differently? Will others think of them as a failure?
If you are contemplating divorce or are in the process already,
take advantage of our complimentary one-hour consultation in
either our Clearwater or Tampa office.
/provise.com