Gray divorce is a term for divorce that occurs later in life. This process can be challenging for elderly couples who have spent many years creating a life together, especially when deciding who gets the family home.
In New Jersey, as in many states, the court considers the family home a marital asset, subject to equitable distribution. This means the court will distribute the property between the spouses in a fair manner, although not necessarily in equal shares.
It depends on the circumstances
When determining who gets the family home, the court may consider the following:
- Length of marriage: The likelihood of the court dividing the property equally increases with the duration of the marriage.
- Financial contributions: The spouse who contributed more financially to the property’s purchase and maintenance may have a stronger claim to the home.
- Age and health: The court may consider each spouse’s age and health, particularly if one spouse requires continued access to the home for health reasons.
- Other assets: The court will also look into other marital assets, such as debts, retirement accounts and investments.
A common outcome is that one spouse may buy out the other’s share, requiring refinancing the mortgage in one spouse’s name. The couple may also sell the home and split the proceeds, providing both spouses with funds to start fresh.
Sometimes, the court allows the custodial parent to stay in the home until the children are old enough to move out. After that, they sell the house and divide the proceeds.
A spouse who owned the house before marriage may claim it as separate property. However, if the other spouse contributed to increasing the house’s value during the marriage, they might deserve a share of that added value.
Facing the challenges alone is risky
The outcome depends on individual circumstances and negotiations between the parties involved. Is it financially feasible for you to cover all housing expenses, including the mortgage payment, property taxes and ongoing maintenance? Will the house meet your needs as you age? Asking yourself these questions can help you make an informed and thoughtful decision.
Many couples who worked with an experienced divorce attorney reached a fair settlement that provided financial stability for both parties in their later years. Do not hesitate to consult with one as well.
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