Financial Considerations for Illinois Couples Divorcing Later in Life

 Posted on May 22, 2025 in Divorce

Navigating divorce for older couples can be challenging. Often, the cases are much more complex, require a forensic approach to dividing decades of shared finances, and a compassionate understanding of the emotional toll of divorcing after many years of marriage. 

If you have questions about your rights and what to expect from divorcing later in life, talk to an experienced Chicago gray divorce attorney today. First, consider some unique financial factors about "grey divorce" that you should know.

What Are the Financial Implications of a Gray Divorce in Illinois?

The financial complexity of divorce is a primary concern for couples over 50. The value of assets accumulated over a long marriage is often substantial, creating a more complicated asset division process. 

Couples divorcing later in life often have more complex assets, such as businesses, investments, and large retirement accounts. Illinois is an equitable distribution state, which means that the law mandates that marital property be divided fairly, rather than equally. Equitably dividing assets in a grey divorce requires careful consideration to avoid penalties, negative tax implications, and difficulty in retirement. 

Other financial aspects of gray divorce that can complicate the divorce process include:

• Spousal support: Single-income households are common among couples over 50, and it is most often because one parent stayed home with the children. Spousal support can lighten the financial burden of divorce for the spouse with lower earning capacity. Illinois law bases the terms for spousal support, also called alimony or spousal maintenance, on factors like income, earning capacity, duration of marriage, and standard of living.

• Health benefits: Married couples often share a health insurance plan. Staying on the same plan is sometimes possible, but only in the short term. Having a pre-existing condition or long-term care needs can make finding alternative coverage more challenging and expensive.

• Retirement accounts: Retirement accounts are often among the largest assets in a gray divorce. Working with an attorney is necessary to ensure that the accounts are divided fairly and thoughtfully, considering penalties for early withdrawal.

If you have concerns about your financial stability post-divorce, a knowledgeable attorney can explain how the law applies to your case and provide a realistic view of the possible outcomes.

Important Steps After a Gray Divorce is Finalized

Once your divorce is finalized, updating your estate plan and wills is a step you cannot overlook. Revised wills should reflect changes in your plan for distributing assets and often require removing your ex-spouse as a beneficiary. If you included a trust in your estate plan, you may need to change the trustees or set up a new trust. 

If you have documents listing your ex-spouse as your power of attorney or healthcare proxy, they will still be allowed to make decisions for you if you are incapacitated, despite the divorce. Your attorney can help you identify and handle post-divorce estate considerations to ensure that your wishes are accurately reflected in the documentation.

Contact a Chicago, IL Divorce Attorney for a Free Consultation

Divorcing when you are older is often more complicated. For most couples, it means addressing significant financial considerations and facing changes that require extensive planning. At The Law Office of George J. Skuros, our Cook County, IL divorce lawyers will ensure you understand the legal issues that apply to your divorce and offer emotional support throughout the process. Call 312-884-1222 to schedule your free initial consultation today, and together we will work toward the best case scenario.