Divorce for older adults in New Jersey, sometimes referred to as “gray divorce,” can create financial challenges for people of all income levels. However, those who have a high net worth may face some unique issues.
Problems that all older couples face include the facts that their financial lives have probably become very entwined over many years together and that they have fewer years of employment ahead of them to make up for retirement losses. However, in a high-asset divorce, complex assets add an additional element of complication to the process of property division. These assets could include artwork, stock ownership and business interests. However, even more common assets, such as retirement accounts and a home, could have acquired a great deal of value over the decades. You may not realize that you are part of a high-asset couple until you sit down to look at their value.
Understanding asset value
Failing to properly understand the value of these assets or one person not knowing their extent are both common problems in these types of divorces. One of the spouses in some high-asset divorces may not have closely followed the marital finances, and this can put them at a disadvantage during property division. There are potentially costs and taxes associated with keeping or selling some assets, including homes, retirement accounts and other investments, and it is important to take this into consideration when looking at their value and deciding how property should be divided.
Older adults who are going through a divorce may not have to worry about child custody issues, but they do have a number of important financial considerations to address. Gathering as much documentation as possible and perhaps meeting with a financial professional to make a plan for after the divorce may help.