Divorces among couples over the age of 50 are on the rise. A recent CNN article told the story of Margie and Dick – a Virginia couple who, after 37 years of marriage, decided to get divorced.  Margie and Dick, along with their respective lawyers, worked together to reach a divorce agreement that provided for each of their financial needs and allowed them to remain friends.  While there are many different factors that contribute to divorce, one thing is becoming increasingly clear: Margie and Dick are not alone.

A study conducted by Bowling Green State University revealed that baby boomers are seeking divorces at an unprecedented rate. According to the study, the rate of divorce among adults over the age of 50 doubled between the years 1990 and 2010.  In the year 2010 alone, adults over the age of 50 accounted for nearly one in four divorces.

No matter the circumstances surrounding a divorce, it is imperative that you consider your financial security.  One of the most important aspects during a divorce is how to divide assets between the spouses. In many cases, this will include a division of retirement benefits that accrued during the marriage.

Dividing Retirement Benefits Under Virginia Law

Upon divorce, Virginia courts first determine whether the couple’s assets are separate property or marital property. Property that is considered separate is not subject to division. This can include assets acquired prior to the marriage, and gifts or bequests to a one spouse during the marriage.

Assets that are considered marital property are then divided between the parties. Under  Code of Virginia § 20-107.3, the portions of pensions, retirement plans, and deferred compensation plans that are acquired during the marriage are considered marital property. Thus, it is likely that all types of retirement benefits that you acquire during your marriage are subject to division by the courts.

How Do Courts Decide Who Gets What?

There is no strict formula used to determine how to divide assets – such as retirement benefits – among spouses. Rather, Code of Virginia directs courts to consider several factors when dividing marital property. These factors include:

  • The duration of the marriage
  • The ages and health conditions of the parties
  • Each party's’ contribution to the well-being of the family – both monetary and non-monetary, such as raising children
  • The circumstances contributing to the divorce, such as adultery, abuse, or abandonment
  • The debts and liabilities of each party

If you are considering a divorce, it is important to remember that the process and subsequent division of assets do not have to be a contentious experience. Despite the portrayal of divorces in the media and popular culture, many spouses reach amicable agreements. Indeed, this was the case with Margie and Dick. Margie and Dick each retained their own lawyer, and, with the help of a third-party, reached an outcome that not only provided for both of their needs, but also allowed them to be friends to this day.

Garrett Law Group, PLC can help you navigate the complex divorce process and reach the outcome that you desire. If you would like more information about divorce and the potential financial consequences, please contact one of our experienced attorneys for a confidential consultation.

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