Older couples who have spent decades together are among those at the highest risk of divorce. While gray divorces are technically subject to the same laws as divorces involving younger couples, they have a tendency to be more complicated.
People who are close to retirement age and who have shared their lives for many years may struggle to separate their finances and personal lives. Their legal challenges aren’t officially over after a judge finalized the divorce.
After the end of a long-term marriage, spouses generally need to update their estate plans. For those who recently completed a gray divorce, updated planning is especially important. What changes do recently divorced older adults usually need to make?
1. Drafting durable powers of attorney
Without a spouse, many people are vulnerable should an emergency occur. There may not be anyone available to take care of their finances and make medical decisions on their behalf. Particularly as people age, they may need to consider the possibility of permanent incapacitation. Durable powers of attorney protect people by allowing them to designate agents to handle their affairs when they cannot.
2. Updating beneficiary designations
Spouses often name one another as beneficiaries in wills, trusts and even life insurance policies. After a divorce, selecting other beneficiaries to inherit from the estate is typically necessary. People may also want to check to remove their spouse from any positions of authority.
3. Changing the assets included
The division of personal property during divorce tends to significantly change people’s finances. They may need to review their documents to eliminate mention of any assets they liquidated or allowed their spouse to retain.
Older adults planning after a divorce may not need to worry about guardians for their children, but they may need to plan to protect any companion animals they adopt after the divorce. They may also want to change who they include as beneficiaries or name a personal representative based on how family dynamics have changed due to the divorce.
Making appropriate estate plan adjustments can help people live confidently even after the end of a long-term marriage. After a gray divorce, people may need to make an effort to revise their estate planning documents and expand their plans.