Divorce can happen at any age, but when it happens to those who are older, the process can be more challenging. Often called “gray divorce” Baby Boomers are now facing this life-changing decision later in life, often after spending decades building assets and a complex intertwined life together. When mature divorce involves 2nd or 3rd marriages, blended families, multiple homes and high value assets, the divorce process can become more complex – and more expensive.
Data on gray divorce indicates that the rate of people over the age of 50 getting a divorce has reached nearly 40% of all divorces in 2022. In New Jersey, the divorce rate stands at 2.3 per 1000 total population, which is mid-range for the US.
Gray divorce, sometimes called later in life divorce, mature divorce, silver splitters, or diamond divorce, isn’t uncommon, but it does mean that different factors may be considered when making legal decisions.
Existing marital agreements impact divorce proceedings. When considering high-asset divorce, which is often applicable in gray divorce, we need to consider prenuptial agreements and the need for postnuptial agreements or changes to better achieve long-term objectives.
When navigating a high-asset divorce later in life in New Jersey, it’s critical to focus on the role that both prenuptial and postnuptial agreements play in protecting assets and dividing them. Consider the following factors in regard to the divorce.
Definition and Purpose
A good starting point is understanding what prenuptial and postnuptial agreements are and how they function as a component of asset protection:
- Prenuptial agreements: Contracts established prior to the marriage that outline how assets are distributed if divorce occurs, as well as the financial responsibilities each spouse holds in the event of such divorce.
- Postnuptial agreements: Contracts formulated after a marriage occurs that address financial changes or reinforce asset protection measures.
Importance in High-Asset Mature Divorce
A high-asset mature divorce requires careful consideration of asset division. A prenuptial or postnuptial agreement could minimize risk to those assets in situations like this.
- Asset Protection: A prenup could provide protection for pre-marital assets, businesses, and inheritances that the individual spouse owns should a divorce occur. This aids in minimizing the impact of those previously owned assets on equitable distribution in the divorce.
- Clarity and Predictability: Provides a clear directive on asset division, reducing the risk of conflicts and legal disputes later.
These marital agreements are a critical tool in protecting your business, your inheritance, and other assets owned prior to the marriage, as well as a court being in control of decisions related to marital assets. Instead, both spouses come to an agreement now before that turmoil occurs.
Legal Requirements in New Jersey
To be legal under New Jersey family law, postnuptial and prenuptial agreements must meet specific requirements:
- Full Financial Disclosure: Both parties must transparently disclose all assets and liabilities to ensure fairness in the decision-making. Not doing so can impact enforceability.
- Voluntary Agreement: Agreements must be entered into without coercion, with adequate time for consideration for both parties.
- Independent Legal Counsel: Each party should have separate legal representation to validate the agreement’s fairness and understanding of their specific needs and objectives. One attorney is not recommended to provide services for both spouses.
Enforceability Considerations
A variety of factors can impact the enforceability of a post- or prenuptial agreement under New Jersey law. This includes:
- Fairness at Execution: Agreements should be equitable at the time of signing. That means that at the time of the creation of the marital agreements, both parties should have an equitable split of those assets. Overly one-sided agreements may face challenges later.
- Changes in Circumstances: Significant life changes, such as substantial income increases, health issues, or business matters, can impact the agreement’s enforceability. Monitor and update agreements over time to minimize these risks.
Common Provisions
Marital agreements can provide a variety of decision-making power now before such decisions need to be made. Some examples of when this may apply include the following:
- Asset Division: How will assets be treated? Specifically, the handling of properties, investments, and business interests upon divorce is clarified. This can fall into a wide range of strategies based on individual needs.
- Alimony/Spousal Support: Outline terms for spousal support, including waivers or predetermined amounts as they apply. This allows for clarity on expectations from the onset.
- Debt Responsibility: Clarify the responsibility for debts incurred before and during the marriage of each spouse and expectations for changes in these debts.
Benefits in Mature Divorces
In a mature divorce, when two people have built a life together or are coming together later in life to build a future together, the role of postnuptial and prenuptial agreements cannot be overlooked. There are several key benefits that happen:
- Preservation of Retirement Assets: Protect retirement accounts and pensions accumulated over a lifetime, allowing for those assets created and bought prior to marriage to remain protected even if divorce occurs later.
- Estate Planning Integration: Ensure alignment with estate plans, safeguarding intended inheritances for children from previous marriages, especially in mature marriages or those getting married later in life.
Potential Challenges
It is critical to approach the discussion of such marital agreements with care. It is not uncommon for there to be emotional sensitivities when discussing such agreements since they can seem as if you are planning for the worst. However, these delicate conversations, especially in long-term marriages, are simply financially sound decision-making.
There are also the risks of legal complexities, especially in the area of later-in-life marriage with children from previous marriages or inheritance concerns. It becomes critical to explore all avenues of potential risk to ensure that each party is getting the support they need while New Jersey compliance requirements are met.
Contact a Toms River Divorce Lawyer at Zeigler Law Group, LLC
Sonya K, Zeigler, Esq. and her team have a well-earned reputation for committed and fierce legal representation. Our firm is here to provide you with the best possible guidance. Call Zeigler Law Group, LLC at 732-361-4827 or contact us online to schedule a free consultation. Located in Toms River, Red Bank, Princeton, and Mount Laurel, New Jersey, we serve clients throughout Ocean County, Monmouth County, Mercer County, and Burlington County.