Dougherty Tobias Iszard, Northern Virginia Law, P.C.

tell us your story703-639-4706

for Personal Injury and Criminal Defense cases.

Financial Priorities During Gray Divorce

During the dissolution of a long-lasting marriage, Virginia baby boomers may find themselves facing an uncertain future as retirement and insurance plans are brought to the table for distribution. Here are a few important financial items seniors should consider in order to maintain health coverage and quality of life after divorce.

To avoid a loss of coverage after divorce, Forbes recommends that spouses over 50 keep in mind five crucial types of insurance: health, life, disability, home and car. Among these, health plans are of primary concern. An ex-spouse cannot continue to be a dependent on his or her significant other’s health insurance but must obtain a separate policy. One option is to take over the payments to continue to receive coverage under an existing workplace plan.

Alternative options include purchasing an individual policy from a different insurance company or applying for coverage through one’s own workplace. It is extremely important to make this shift as soon as possible to avoid the possibility of being without coverage during a health emergency.

Though ex-spouses must seek their own health insurance after divorce, they may remain on life insurance policies in certain circumstances. If neither party is required to provide financial support to the other following divorce, ex-spouses may be removed from a life insurance plan. However, if spousal support is mandated, a life insurance payout may be used in lieu of alimony in the event of an ex-spouse’s death.

Retirement funds can also evaporate after a gray divorce, according to U.S. News & World Report. After they are equitably split, assets that were intended to provide support for decades may dwindle to nothing, particularly when pensions are used to minimize alimony payments or circumvent them entirely. Before choosing this option, it is important for spouses to take into account two factors. First, courts are likely to make a provision for lifelong alimony at the end of a long-lasting marriage. Second, alimony counts as taxable income for the recipient, but retirement plans may be tax-favored.


No Comments

Leave a comment
Comment Information
Email Us For A Response

contact the firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

contact info brand logo

Manassas Law Office
9300 W Courthouse Road
Suite 204
Manassas, VA 20110

Phone: 703-639-4706
Phone: 703-530-7022
Fax: 703-884-1140
Manassas Law Office Map

Fairfax Law Office
10505 Judicial Drive
Suite 203
Fairfax, VA 22030

Phone: 703-639-4706
Map & Directions