Autumn Years Spring 2023

FINANCIAL PLANNING

The Current Trend in Divorce over Age 55 Charting the Financial Road Ahead By Paul Lomberg, Esq., and Cathy J. Pollak, Esq.

Also, in determining the appropriate division of marital assets and support needs, a review of the couple’s current or anticipated Social Security benefits and any significant differential in those ben efits must be analyzed when considering the entire matrix of the division of assets. Given the economic status of the parties, there may be some form of alimony based on the disparity in the parties’ Social Security benefits or income from exempt assets towards providing each party with monthly income to meet their support needs. Depending on the parties’ circum stances, financial and estate planning, reverse mortgages, annuities, life insur ance and other tools enable each party to obtain some form of current and future financial independence. Whatever decision a couple makes at this turning point in their lives, it is im perative that they seek professional advice to educate themselves prior to proceeding with a divorce to gain a complete under standing of the financial road ahead. Since May 2000, Paul has been Certified by the Supreme Court of New Jersey as a Matri monial Law Attorney and has been a licensed attorney of the State of New Jersey since May 1986. Cathy has been a licensed attorney of the State of New Jersey since December 1976. She currently serves as Secretary of the Board of Trustees of the Center for Hope and Safety, the largest non-profit organization in Bergen County servicing victims and survivors of domestic violence. For more information, contact Paul at Paul@ldplawyers.com and Cathy at Cathy@ ldplawyers.com or visit www.ldplawyers.com Paul Lomberg and Cathy J. Pollak are attorneys with the law firm of Lomberg Del Vescovo Pollak, LLC.

Many expect couples to remain happily married after 25-plus years of marriage. They may have raised a family, supported each other’s careers and saved for their future. However, over the past few years, society has changed. Between social media, retirement and other lifestyle changes, couples who usually would remain married are increasingly divorcing.

I n April 2021 a report by the U.S. Census Department found that divorce rates were the highest at 43 percent among couples ages 55 to 64 and at 39 percent of those ages 65 to 74. Each couple’s reasons for divorce may differ ranging from financial disagree ments, changes due to becoming empty nesters, retirement, lack of intimacy or dif ferent interests. In addition, remote work and health issues caused by the COVID pan demic adversely affected many marriages. These factors, combined with the social acceptance of divorces, have resulted in an increasing number of long-term marriages ending in divorce. The increasing divorce rate for couples over 60 is often referred to as a “silver” or “grey” divorce. Divorce at any age is complicated. How ever, the issues involving a couple who have been married for many years and are at or near retirement age are different than those faced by younger people. Typi cally, there are no child custody and child support issues in silver divorces. The reasons for a couple to divorce after a long-term marriage are typically not relevant to the Court. The dissolution of the marriage, from the Court’s per spective, is the end of a financial partner ship, requiring the economic issues to be addressed. The economic issues focus on alimony and the equitable distribution of marital property. Marital property consists of many assets, including but not limited to real estate, savings, brokerage

accounts, retirement assets (IRA, 401K, and pensions), personal property, life insurance, annuities and business interests. Also, in certain circumstances, either party may have exempt assets (inheritance and premarital assets) that may require further consideration in determining any support needs and the division of the marital assets. A couple’s financial circum stances are unique to them and their spe cific facts. No two divorces are the same. As in all divorces, a spouse’s ability to support himself or herself and maintain the marital standard of living after a divorce is the typical goal under statutory and case law. This is difficult to achieve in most divorces. However, in silver divorces when the parties have retired or are approaching retirement, this goal may become even more problematic to fulfill. As opposed to other divorces, silver divor cees have a reduced ability to accumulate additional assets, given their age and anticipated retirements. Thus, in a silver divorce, the economic impact of a divorce requires careful consideration of all issues with the goal of providing for each party’s future support needs. In New Jersey, there is a presumption that alimony terminates upon the payor reaching full retirement age unless a party remains gainfully employed. However, if the parties are getting divorced and both parties have reached retirement age, the continued employment of one party may result in an alimony obligation.

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AUTUMN YEARS I SPRING 2023