How Elder Divorce Works in Alabama

Divorce can be complicated at any age, but when it occurs later in life, often referred to as “grey divorce,” unique legal and financial issues can arise. As more couples in their 60s and beyond face divorce, Alabama has developed legal frameworks to address the distinct needs and considerations of older adults ending their marriages.

Whether you’re facing a grey divorce yourself or supporting a loved one through the process, understanding Alabama’s approach to elder divorce can make navigating this life change a little less overwhelming.

What Is Grey Divorce?

Grey divorce, or elder divorce, generally refers to divorces involving individuals over 60. With longer lifespans, evolving societal norms, and shifts in financial independence, more couples are choosing to end long-term marriages later in life.

Grey divorce often involves complex financial and emotional considerations, as these individuals may be close to retirement or already retired, may have adult children, and have built up significant assets during a long marriage.

Why Grey Divorce Can Be Legally Complicated in Alabama

Alabama, like many states, operates under a fault-based divorce system, which means one spouse can cite grounds for divorce, such as adultery or abandonment. However, Alabama also offers a no-fault divorce option, allowing couples to divorce without proving specific misconduct.

The nature of the assets and financial arrangements involved heightens the legal complexities of grey divorce.

Couples divorcing later in life are often facing retirement, navigating social security issues, and protecting their adult children’s inheritances. These factors make the legal process for elder divorce distinct and sometimes more challenging than divorces between younger couples.

Division of Marital Property and Assets

Asset division can be one of the most contentious issues in a grey divorce. Alabama is an equitable distribution state, which means that assets and debts are divided in a fair way, though not necessarily equal, based on various factors.

Some of the key considerations in grey divorce asset division include:

  1. Retirement Accounts and Pensions: For older couples, retirement accounts and pensions may be among the most valuable assets. Alabama courts consider retirement accounts acquired during the marriage as marital property, even if they are in one spouse’s name. Dividing these accounts can be complex and may require a Qualified Domestic Relations Order (QDRO) to distribute retirement benefits without incurring early withdrawal penalties.
  2. Social Security Benefits: Social security is another essential consideration in grey divorce. Alabama does not allow direct division of Social Security benefits, but a spouse may be eligible to draw on the other spouse’s benefits if the marriage lasted at least 10 years. This potential eligibility can impact financial stability in retirement and may affect other financial settlements during the divorce.
  3. Property and Real Estate: For many grey divorce couples, the family home is one of the most valuable shared assets. Couples must decide whether to sell the home, divide the proceeds, or have one spouse keep it while “buying out” the other’s share. In some cases, older adults choose to sell the home to simplify their post-divorce lives and use the proceeds to fund retirement.
  4. Business Interests: If one or both spouses have ownership in a business, this asset will also be subject to division. Valuing a business can be complex, especially when it’s an established asset accumulated over many years. Courts often look to professional appraisers to determine the business’s fair market value and then determine a fair division based on the overall asset distribution.

For these reasons, it’s important to contact a qualified Alabama divorce lawyer to assist you in financial planning and dissolution before the divorce is finalized.

Spousal Support (Alimony) in Grey Divorce Cases

Spousal support, commonly referred to as alimony, is often a critical issue in grey divorce cases. Alabama courts may award alimony based on the length of the marriage, each spouse’s financial resources, and their individual needs.

Long-term marriages—often the case in grey divorces—are more likely to result in alimony awards, as the dependent spouse may have fewer prospects to become financially self-sufficient. In Alabama, alimony is not guaranteed, but in grey divorces, courts may be more inclined to award support due to the age and financial dependency of one spouse.

Types of Alimony in Alabama:

  • Temporary Alimony: Granted for the duration of the divorce proceedings.
  • Rehabilitative Alimony: Paid for a duration as determined by the court or an agreement.
  • Periodic Alimony: Paid at regular intervals and may continue indefinitely until a spouse remarries.
  • Lump-Sum Alimony: A one-time payment that serves to help the dependent spouse adjust to their new financial situation without requiring ongoing support.

The awarding of alimony in grey divorces often takes into account that it may be difficult for a spouse in their 60s or older to re-enter the workforce or achieve significant income growth.

Healthcare and Insurance Considerations

Healthcare is a major concern for those going through grey divorce. Many couples who divorce after age 60 must consider how the divorce will impact their health insurance and medical care.

  • Health Insurance: If one spouse was covered under the other’s employer-sponsored health insurance, they may lose this coverage upon divorce. While COBRA coverage may be available as a temporary solution, the costs can be high. Couples should explore alternative insurance options, especially if they are not yet eligible for Medicare.
  • Long-Term Care Costs: Divorce may impact each spouse’s ability to afford long-term care. Some individuals facing grey divorce opt to plan for future medical needs by setting aside funds for long-term care insurance or creating an irrevocable trust to protect assets.

Ensuring adequate healthcare coverage after a grey divorce is a crucial part of planning for financial security, and this issue is often discussed during settlement negotiations.

Inheritance and Estate Planning

In a grey divorce, inheritance and estate planning can be especially sensitive issues. Many older adults have accumulated substantial assets and want to protect their children’s or grandchildren’s inheritances. Alabama law does not consider inherited property as marital property, provided it has been kept separate from shared marital assets.

However, if the inheritance has been commingled with marital funds, it may be subject to division.

After a grey divorce, it’s essential to update estate planning documents, including wills, trusts, and beneficiary designations on accounts. Without updating these documents, an ex-spouse may unintentionally remain listed as the beneficiary, leading to conflicts or unintended outcomes.

Seek Guidance for a Fair and Secure Grey Divorce

Going through a divorce later in life is challenging, but understanding Alabama’s legal framework for grey divorce can help you make informed decisions about your future. From retirement assets to health care and spousal support, grey divorces involve unique complexities that deserve thoughtful attention and careful planning.

The Rose Law Firm LLC is here to support you every step of the way. Our team understands the specific needs of individuals going through grey divorce, and we’re committed to helping you achieve a fair and secure settlement that respects your years of hard work.

Contact us today for a consultation, and let’s work together toward a brighter future.