Gray Divorce – Ending a Marriage Later in Life

America’s population is getting older, and older couples with longer marriages getting divorced are more common. If you no longer feel marriage is right for you, you should consider a divorce no matter your age or the length of your marriage.

Karen Ann Ulmer, P.C., represents clients over 50 years of age in divorce and related family law issues. We know these divorces involve unique problems, and we are sensitive to our clients’ wants and needs. We will protect your rights and negotiate a fair settlement that allows you to move on with the rest of your life in the best position possible.

There are No Age Limits on Divorce

Some older married couples grow apart as time goes on. Their emotions towards each other may weaken or turn negative. Spouses may have more health issues and a limited income, increasing the stress on their relationship.

A spouse may look to the past and feel disappointed. Their life, including their marriage, hasn’t turned out as they planned. They understand better than most of us that time is limited, and changes must be made if they want to live the life they seek. One of these changes may be ending their marriage.

The COVID-19 pandemic has shaken many of us, giving us a greater appreciation for the fragility of life and our health. Increasingly, people unhappy with their jobs aren’t returning. The experience may also leave some older, dissatisfied Americans to decide they no longer want to put up with a relationship that no longer works for them. Many marriages limp along “for the sake of the children” but after the children grow up and spouses are older, they may want a divorce for their own sake. 

Is it the Right Time to Divorce?

In some ways, it’s a great time to divorce. If the marital home must be sold, real estate prices are at historic highs while interest rates are at historic lows. If you’ll return to the workforce, employers are raising wages and improving working conditions to attract job applicants.

Many more women own businesses and earn higher incomes than in the past, but a divorce can be a financial blow to both spouses. The greater your wealth, the better off you’ll weather this storm, no matter your age. Whatever your losses, younger people generally have more time to earn and save money to make up for the money spent and assets transferred during a divorce. If you’re at or near retirement age, that can be a lot harder to do.

Divorce and Social Security

Generally, men earn more than women, but given the division of marital assets and the possibility of spousal support, the post-divorce picture should be more even. If you haven’t worked much or earned less income than your spouse, another way to cushion the blow might be Social Security payments based on your spouse’s work history.

If you are 62 and divorced from someone who’s entitled to Social Security retirement or disability benefits, you might be eligible for benefits based on your ex-spouse’s work record, according to the Social Security Administration:

  • You’ll be eligible if your marriage lasted for 10 or more years
  • If you remarried, you can’t go this route unless your subsequent marriage ended by annulment, divorce, or death
  • If you’re entitled to benefits based on your own record, you’ll get whichever is higher, benefits from your own history or from that of your ex-spouse
  • You may apply for benefits based on your former spouse’s record even though he or she still works, if you’ve been divorced at least two years before applying
  • If you wait until full retirement age to apply for Social Security benefits as a divorced spouse, your benefit will be half of your ex-spouse’s full benefits

How an Older American Without Health Insurance May Find Coverage

Healthcare coverage is a major concern for those getting divorced. That’s especially true for older couples who may currently, or in the future, suffer a chronic medical condition. If both spouses are covered because one works and qualifies for a healthcare benefit, the other spouse will lose that coverage when the divorce is final (unless you qualify for COBRA benefits, extending your coverage for up to three years, if you can afford the payments).

Another way to get coverage can be an Affordable Care Act (or Obamacare) plan. There’s mixed news if you seek coverage this way. Premiums are partially based on your age, so the premium for someone older may be much higher than one for a young American. But premiums are also partially based on your income (which won’t include alimony if you haven’t divorced yet), so it makes health coverage more affordable if you’re not making much money.

Get the Help You Need from an Attorney You Can Trust

If you are considering divorce or have decided it’s the right choice for you, call our office at (215) 608-1867 or book a consultation online now. It’s never too late to start a new chapter in your life. We can speak over the phone, via a teleconference, or meet in one of our offices in Doylestown or Langhorne.

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How Will Your Divorce Impact Owning a Business?

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If you own a business, or your spouse does, and you plan on divorcing, it is potentially a big issue that must be addressed.

Marital property is usually divided during a divorce. That can be done through an agreement by the spouses or a judge’s order if no agreement is reached. That marital property can include ownership in a business. 

Every divorce and business is unique and how it’s handled in your case can vary depending on your circumstances.   

Karen Ann Ulmer represents clients who are ending their marriages. Her divorce practice can help you whether you, your spouse, or the two of you own a business. Dealing with this issue can be very stressful and emotional, but it doesn’t have to be that way. If you have any questions, call us at (215)608-1867.

Issues Outside Divorce Law May Determine What Happens to the Business Ownership

Different agreements can impact the division of business ownership in a divorce:

  • Ownership: If it’s a small business with more than one owner, there should be an agreement between them. It should clearly spell out what happens to the divorcing partner’s share. It could state that their share needs to be sold to the other partner(s) at a given price or the price may be calculated based on the company’s value or some other calculation.
  • Partnership agreements: If there was a partnership agreement in place before the marriage, it may have required that a prenuptial agreement be signed specifically stating how the non-ownership spouse will be compensated (or not) should the marriage end in divorce.  
  • Pre or post-nuptial agreements: Before or during the marriage, a couple may have agreed on financial matters if they get divorced. How business ownership would be handled may be part of that agreement.  

If you and your spouse both own a business, you need to decide if you want one or both of you to sell your interests. If the divorce is amicable and you both feel you can work together, you can both keep your interests and see if you can work it out. However, the details of this arrangement, including what happens should a spouse want to cash out, should be clearly spelled out. It is important to remember that you are divorcing for specific reasons and working together may be very difficult. We recommend giving this a trial run with very detailed scenarios detailed in agreements to protect the business and both spouses in the future.  

How Should the Business Ownership Be Divided?

Marital assets (generally what the couple obtained during their marriage) are supposed to be split equitably or fairly under state statute 23 Pa.C.S. § 3502(a). If one spouse has an ownership interest in a business, it could be split with the other based on the following factors:

  • The length of the marriage
  • The age, health, income, vocational skills, employability, estates, liabilities, and needs of each party
  • The contribution by one party to the education, training, or increased earning power of the other
  • The opportunity for each party to acquire capital assets and income in the future
  • The income sources of both parties, including insurance or other benefits
  • The contribution or lessening by each party of the acquisition, preservation, depreciation, or appreciation of the marital property, including the contribution of a party as a homemaker
  • The value of property set apart to each party
  • The parties’ standard of living established during the marriage
  • Each party’s economic circumstances when the property will be divided
  • How taxes and costs impact the property division
  • Whether the party will be the custodian of any dependent minor children

Either through an agreement or court order, it would be decided if the business ownership is marital property to be divided, and if so, by how much and how that would be accomplished.

How Might This Play Out?

A common outcome is the value of the ownership would be determined and the party owning it would pay the other spouse for their share. That payment could be in cash or as part of a larger asset agreement. If the husband owns the business and must pay his wife $100,000 for her share of ownership, he could give up claims to $100,000 worth of other assets (cash, investments, share of the house, vehicles) which would go to the wife to satisfy what’s owed.  

It is also common for this amount to be paid out over time so the business can remain solvent. However, we recommend putting safeguards in place in case the business is sold or starts to encounter financial trouble. Both the paying and receiving spouse need to be protected.  

Get the Help You Need From an Attorney You Can Trust

Whether you, your spouse, or the two of you together own a business and want to learn more about how a divorce may impact you, call our office at (215) 608-1867 or book a consultation online now. We can speak over the phone, via a teleconference, or meet in one of our offices in Doylestown or Langhorne.

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Desperate for Divorce but Worried about Abuse?

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If you are currently married and in a physically or mentally abusive relationship, it can be a very tarrying situation that you might be desperate to get out of. You might be thinking of leaving or filing for divorce but have that voice in your head telling you it is not a good idea because of the potential reaction from your spouse. What if filing for the divorce causes the abuse to escalate when they find out? If your spouse already has a history of abuse towards you, the fear you have might take over and prevent you from following through with the decision to follow through with filing for divorce, and separating from them finally.

If there is a history of abuse you can file a petition for a Protection from Abuse Order while you prepare to file for divorce. To get a protection from abuse order you would first want to file with the court. Then likely, a Judge would issue a temporary order without the abuser being present while a future hearing date is scheduled. Both you and the abuser would then have to appear before a Judge at the later date. At this hearing either the abuser can consent to the Protection Order, or request to have a hearing where the Judge would hear testimony and make an order. These types of orders can last for any duration of time up to 36 months. If the abuser were to violate any such order they would be held in contempt. Consequences of a contempt violation can range from fines to jail time. When you are in an abusive marriage and desperate to get out but just fearful of what will happen if you try, a Protection from Abuse order can grant you that peace of mind to be able to file and get divorced with added protection from your abuser’s potential reaction.

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Divorce Forms

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There are a number of forms required to be submitted to the court in the course of a divorce where a claim for equitable distribution of marital assets has been raised. An Inventory and Appraisement form has each party identify all the assets and debts at issue in the case. Values or balances at the date of separation should also be disclosed. The form distinguishes between marital assets and assets an individual may be claiming as non-marital. Any assets identified as non-marital should include an explanation as to why they should be categorized as non-marital. For debts, the creditors should be named along with the nature of the debt. Finally, the Inventory asks parties to identify any assets that have been sold or otherwise transferred.

An Income and Expense statement has each party provide detailed information on their present income and ongoing expenses. With respect to income, frequency of payment and taxes or other deductions from gross income should be disclosed. There is a separate form for self-employed individuals whose calculation of income can be less straight-forward. With respect to expenses, parties should identify if it is a monthly, quarterly, or annual expense. Additionally, parties can mark whether the expense is an individual one versus an expense incurred for their children and/or spouse. Both of these forms help in demonstrating standard of living established during the marriage and financial circumstances of the parties as they separate to assist the court in making support and/or equitable distribution awards.

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Support Between Spouses

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Married persons are liable for the support of each other according to their respective abilities to provide support as provided by law. Similar to child support, spousal support will be calculated based on a statewide guideline. Without children, spousal support is calculated by multiplying the paying party’s income by 33% and the receiving party’s income by 40%. The difference of these figures would be the support award. If there is also a child support order, spousal support should be calculated first. Multiply the paying party’s income by 25% and the receiving party’s income by 30% and then calculate the difference. Child support is then calculated with the spousal support award being deducted from the party paying spousal support and added to the party receiving spousal support.

There are some defenses to paying support to your spouse. One exception to the duty to pay spousal support is where the spouse seeking support has engaged in conduct that would constitute grounds for a fault-based divorce such as adultery. It is up to the spouse who is objecting to a spousal support award to prove a fault ground for divorce by clear and convincing evidence. Alimony pendente lite (APL), a form of spousal support payable while a divorce is pending, does not allow the same defenses. The purpose of APL is to allow the income dependent spouse to participate in the divorce action and fault is not a factor. Alimony, spousal support paid after entry of the divorce decree, can be terminated by proving the spouse receiving alimony is living with a new lover or is remarried. Consult with one of our experienced attorneys to understand the different types of support that may be awarded between spouses.

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Protection From Abuse

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A PFA Order is a civil remedy to end abusive relationships. Remedies for a successful PFA petition can include having the Defendant removed from a residence that was previously shared, restrictions on contact for up to three (3) years, relinquishment of firearms or other weapons, reimbursement for related expenses or out of pocket costs suffered, temporary support, and in some cases, a custody schedule. It is possible to list multiple persons in need of protection under the PFA in one petition including children. A Protection from Abuse (PFA) petition requires the petitioner to identify the defendant, state the incidents constituting the “abuse” as well as any prior history of similar incidents, provide notice of any weapons involved, and set out the relief requested.

A PFA can only be filed if there is a relationship between the Petitioner and Defendant. Recognized relationships include spouse or former spouse, parent of child with Defendant, current or former sexual/intimate partner, child of Plaintiff or Defendant, family member related by blood or marriage, and sibling. Abuse, for purposes of obtaining a PFA, is defined as

physical violence or imminent threat thereof, stalking or any other course of conduct which would place a person in fear of bodily injury. The party pursuing a PFA order must establish by a preponderance of the evidence, or more likely than not, that some abuse occurred. Violations of a PFA may be criminal in nature depending on the nature of the violation. Criminal charges may also be pending simultaneously with a PFA petition.

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Name Change

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To effectuate a legal name change, you will need to file a petition with your local civil court.

A filing fee is due to the county at the time of filing as well as copies of your fingerprints which can be obtained at your local police department. A hearing on your request for name change will be scheduled for a few months later. If you are filing a petition on behalf of a minor, you will need to effectuate service of the petition and hearing date on the other parent. If you are filing as an adult, prior to the hearing date notice of the petition must be published in the county law reporter as well as a newspaper of general circulation. Additionally, adults must have checks through the Prothonotary’s office for civil matters, the Clerk of Courts for criminal matters, and the Recorder of Deeds for any property issues. If you have resided outside of your current county within the prior five (5) years, these checks should also be performed in the county where you used to reside.

At your scheduled hearing, you should appear with proof that all prerequisites have been met in terms of publication, background checks, and service, if applicable. Name changes are permissible so long as it is not sought for illegitimate purposes and the person seeking a name change does not have certain criminal convictions. Criminal convictions that will bar a request for a name change include murder, voluntary manslaughter, rape, involuntary deviate sexual intercourse, statutory sexual assault, sexual assault, aggravated indecent assault and robbery.

If requesting a name change of a minor and the other parent does not agree with the name change, the court will decide after hearing from the parties based on whether the request for name change is in the child’s best interests. The party requesting the name change has the burden of proof and must convince the court how the requested change would serve the child’s best interests.

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Identifying Marital Property in your Divorce

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Marital property is defined as assets or debts acquired during the marriage. Marital property is subject to equitable distribution between the parties as part of a divorce action. There is a process to acquire information on potential marital property if you are unsure of what assets and debts would comprise marital property in your case. Discovery is the process of obtaining information from the opposing party in the course of a lawsuit. Discovery is allowed in any divorce case which includes a request for equitable distribution or alimony. The information requested in discovery must be relevant to the case. In divorce, the court gives much leeway as to what is relevant since the factors for equitable distribution allow for broadness. As a practical matter however, you will want to focus on assets and debts and their values as of date of marriage, date of separation and present as these are the important dates with respect to valuation.

Formal discovery methods include interrogatories, depositions, production requests, subpoenas to produce documents, and requests for admission. Interrogatories are a written set of questions for the other party to answer under oath. A production request identifies which documents a party is seeking. Subpoenas are utilized as well when it is necessary to get information directly from the source in the instance a party does not have it or will not cooperate in turning it over. Authorizations can be acquired in lieu of a subpoena if a party has not produced the documents themselves but is willing to cooperate in signing the authorization for the opposing party to do the legwork in obtaining the documentation. Due to the expense to the parties for formal discovery, parties often agree to exchange information informally. Consult with an experienced family law attorney to discuss the marital property in your case and the best way to obtain the necessary information to effectively handle your case.  By April M. Townsend

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How do you divide retirement assets in divorce?

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Pensions, as well as other retirement plans, are often one of the assets up for division in a divorce. The court will equitably divide the marital portion of a pension plan after considering all the relevant factors in equitable distribution. The marital portion of a plan would be the portion that accrued from the date of marriage through the date of separation. In some cases, the entire pension will be marital depending on the timing of the marriage alongside the start date of the pension plan. A qualified domestic relations order, or QDRO for short, is a document used to effectuate division of certain retirement benefits.

A QDRO can facilitate a tax-free transfer of retirement benefits from one party to their new or soon-to-be ex-spouse. The receiving spouse would then be taxed as they withdraw the money as the tax laws provide. The exact nuances of how the plan/benefit is split and what options are available will vary based on the type of plan. It is always advisable to review the procedures for the specific plan you may need distributed to understand what their rules and policies are when it comes to splitting a participant’s benefits via QDRO in the context of a divorce. You will also benefit from having an experienced family law attorney review the terms of the QDRO before you sign off on it and submit it to the Plan Administrator for implementation. Finally, most plans have very specific requirements as far as how the language of the QDRO is to be worded in order for it to be accepted and processed. At a minimum, a QDRO should identify the parties, the plan at issue, and the amount going to the receiving party either as a lump sum or a percentage of the total benefit. It is wise to enlist the services of an expert that routinely drafts QDROs to ensure the language is correct and all requirements are met.   By April M. Townsend

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Gifts of Assets

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Each individual is permitted to gift $15,000 in assets each year without tax implication. $15,000 is the annual cap for federal gift tax purposes. There is not a gift tax in Pennsylvania. Even individuals who gift above this yearly threshold, may not need to pay taxes. Amounts in excess of the yearly limit can be assessed against that individual’s lifetime gift tax exclusion. Presently, the lifetime gift tax exclusion is 11.18 million. Most individuals will not exceed that sum over the course of their lifetimes.

You should be aware that gifts made within a year of death may be subject to Pennsylvania inheritance tax depending on the amount and nature of the gift. There are some gifts that are non-taxable and do not count against your annual exclusion or lifetime exemption. Gifts between spouses can be unlimited. Payments for tuition or medical expenses paid directly to respective institution or facility on someone’s behalf are not taxable. Gifts to political organizations and charities are also under the umbrella of non-taxable gifts. Any individual making a taxable gift above the annual exclusion must complete Form 709, the Gift Tax Return. Filing of the return does not mean any taxes are due however if still within your lifetime exemption. Consult with an experienced estate planning attorney to make further understand your options in making gifts as part of your estate plan.  By April M. Townsend

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