Gray divorce brings numerous complications. Couples who have built decades of personal and professional connections can have difficulty disentangling these social and business networks.
Because the number of gray divorces is rising, couples must prepare for how to handle this possibility. Before a mature couple with substantial assets begins divorce proceedings, they can consider unique problems that may arise.
Splitting a family-run business
A family-owned company can be part of a couple’s shared assets, and division can be complex. A business may have a deep personal significance to one or both spouses. Also, issues can arise over who keeps the company name and clientele.
Experienced professionals often need to come in to make valuations and assess each mate’s contribution to the entity. This assistance can smooth the process of making an equitable distribution.
Adjusting estate plans
Wealthy families are more likely to appreciate the importance of thorough estate planning. Correcting these documents to reflect a person’s new wishes is rarely straightforward during a divorce. Each party needs to ensure that trusts, wills and partnerships coordinate and do not conflict with instructions for retirement plans, insurance policies and government benefits.
Addressing tax concerns
Managing an estate well means establishing businesses and entities to take full advantage of the tax code. Divorce changes a person’s status and can bring unwelcome surprises and notices from the Internal Revenue Service.
Spouses who are separating can do whatever is possible to shield themselves from tax ramifications. A person might need to be particularly conscious of tax problems if a factor in the split involves financial impropriety on the other spouse’s part.
Additional issues can arise during a gray divorce concerning a home sale, spousal support and property division. A careful review of the entire financial portfolio may avert problems later.