…easier said than done. The tension to which I refer is the tension inherent in maintaining a balance between keeping our children secure, making sure they have a safety net while simultaneously maintaining enough distance that we are able to accommodate their developing need for autonomy and independence. At every developmental stage there are tasks to be accomplished, skills to be mastered so that our children can move to the next stage with confidence and competence. If we attain that balance, our children will find themselves thriving in just the right “holding environment.” Just as we swaddle and hold infants to keep them comfortable and content, parenting older children requires that we hold them metaphorically

This task is challenging under the best of family circumstances, let alone when the family system itself is under increased duress. Such are the times of conflict, separation, or divorce. During these periods, children feel the added tension, often worry about their parents, and may be concerned about what will happen next.

Very young children, who miss very little and tend to misinterpret most of it, may understand only happy or sad, safe or scared, protected or hurt, accepted or rejected, loved or unloved. During the preschool years, children are just learning about relationships while having little experience with them and only a very concrete context in which to understand them. In addition to the basic love and affection needed by all of us, children require limits and boundaries, a pattern of behavior to follow. They rely on simple, clear routines and guidelines and a safe environment for exploration in order to grow cognitively and socially. All of these may be interrupted during times of high family stress and parental conflict or separation. They need adults to help them delay gratification, to reinforce self-calming strategies, to help them learn to manage their impulsivity, and to provide calmness and consistency. To help them move on, we must let them move around, fall down, make mistakes, and get up. We must help them learn the difference between what is theirs and what isn’t, whether we are talking about physical space, personal boundaries, or possessions. When parents are focused on each other in a less-than-wholesome manner or on themselves out of worry and self-protection, they may have less time and energy for positive parenting. In the author’s experience, young children who have been asked to draw a picture of Mommy’s house and Daddy’s house and the way between them most frequently draw pictures of roads with monsters, fire, and other hazards.

In the early elementary grades, children continue to need warmth, affection, and nurturing. However, teachers do not provide the same amount of physical closeness that parents do. Their nurturing comes more in the form of their encouragement and praise, their guidance and challenging of the children’s interests. Society continues to expect delay of gratification and impulse control. In maintaining a somewhat greater distance than parents, teachers help the children to set their own boundaries in the classroom community.  At the same time, children in families with emotional distress may act out rather than express their feelings and have increasing behavioral difficulty at school.  These children are involved in the task of identification, being “like” Mommy or Daddy. How does what they witness between their parents impact their sense of themselves? In one picture drawn for the artist, a child who was asked to draw a picture of Mommy, Daddy, and herself, drew a red Mommy, a blue Daddy, and herself half of each color. Imagine what the parent can learn who asserted that it didn’t impact their daughter if she heard them make scathing comments about the other parent. It is important for children to have adults model appropriate expression of feelings, teach the difference between what is “true” and what is “not true,” to help the children with acquiring basic self-advocacy skills and to reinforce the concept of compromise. They need us to model appropriate social behavior, to enforce rules, and to expect from them responsibility for their choices, their actions, and their possessions. In helping them move on, we work with them to explore their role in the family and the school community, to clarify their relationships with peers and adults, and to understand the kindness and reciprocity in true friendship.

In the later grades of elementary school,  children’s developmental tasks include building their social skills repertoire, developing stronger peer relations and more consistent groups of friends, and assuming increasing responsibility in tasks and relationships. To provide an appropriate holding environment during these years, parents and teachers acknowledge and promote self-sufficiency, competence, and role definition. We hold children responsible for their own feelings and their own behavior, and we appropriately reinforce the authority of adults in the home and school communities. These tasks cannot be accomplished successfully when children have anxiety, deep sadness, sleeplessness, or what they may perceive to be anger at them. These children may not understand the difference between having a voice or a vote in family decisions and may experience very strong confusion and a divided sense of loyalty or may perceive one parent to be all good and the other to be all bad.

Even stages of adolescent and young adult development can impacted by having parents who are separating or divorcing. Adolescents may tend to vote with their feet or have a sense of empowerment that belies their age and development. Maintaining stability in an environment flooded by a hormonal potage can challenge the best developmental expert.

The “growing” of loving, competent, and happy adults begins at birth. We hold our children as they develop, allow them to make mistakes and learn lessons, encourage them to enhance self-esteem. We challenge them to become their best selves by providing optimal frustration, expectations for personal responsibility and accountability, and the luxury of time and patience while they learn who they can become. When they decide they can ride alone on their bike to the corner, we encourage them to ride all the way around the block and greet them on their return with a high five and a hug. We prepare them for their lives ahead by protecting them only so much on their journey. Slowly but surely, we allow them to be exposed to the frustrations and challenges of day-to-day living so that they can demonstrate resilience, competence, and satisfaction with themselves and the rest of their intimate community.

In Collaborative Divorce, parents receive additional support and encouragement they need together from a team on which they have worked together toward preserving as many of their hopes and dreams for their children as possible. They have the opportunity to acquire additional information and skills related not only to negotiation and conflict resolution, affective expression, communication, and child development. They have the opportunity to work together in a monitored and mediated process to enhance not only their children’s development, but their own as well. The autonomy, management, and decision-making are theirs and theirs alone, supported by competent, informed, and caring professionals working with them on their team.

About the Author

Gay is a CLI-MN member working in eclectic and inspired ways to support children, adolescents, adults, couples, and families through the typical and extreme challenges they may face in their lives. She is committed to preventing high conflict divorce and the related impact on children and parents. Gay says that she does this work because, “I love the opportunity to work as part of a team in leading families to and supporting them in wellness, in life-giving transactions and interactions; the opportunity to work toward their emotional health and well-being now and in the future of the children of our community”.

Gay Rosenthal, MA, LP
Psychologist/ Mental Health Professional
612-237-6547 | gay_rosenthal@me.com
https://rosenthal-psychology.com

 

Divorce after 50 involves a different set of financial stakes than divorce earlier in life. There’s less runway to rebuild retirement savings, more complexity in how assets have grown over decades, and often a spouse who has been out of the workforce far longer than anyone planned for. Most of the decisions in a divorce settlement can be revisited or adjusted over time. A handful cannot. Getting those few right, the first time, matters more than almost anything else in the process.

This holds true no matter which path a couple takes to get there. Whether the case is mediated, handled collaboratively, or litigated with each spouse independently represented, the financial mechanics underneath the settlement don’t change. Here are five decisions worth slowing down for, regardless of which room the conversation happens in.

  1. Not knowing your post-divorce budget

Almost everything else in a gray divorce settlement depends on this one, which is exactly why it tends to get shortchanged. Most people, married or not, don’t have a clear picture of where their money goes each month. That’s a manageable gap during a marriage. It becomes a much bigger problem when someone needs to prove, with real numbers, what they need to live on going forward, especially for the spouse who hasn’t been the one handling the household finances.

In Minnesota this support is called spousal maintenance (some states use the term alimony; it’s the same concept). Need must be demonstrated, and the other spouse must have the ability to pay. A spouse who underestimates their future budget, or who waives maintenance without a realistic number behind that decision, often can’t go back and ask for it later. In some settlements that waiver is permanent. Others are structured as reserved, meaning maintenance could still be modified later if certain conditions are met, but that’s not something to assume without it being spelled out clearly in the decree. If the money runs out five or ten years down the road, a permanent waiver is usually the end of the road, and inflation only accelerates how fast a fixed amount of savings loses ground.

This same budget also drives the decision about the house, whether Social Security timing matters yet, and how to fairly divide accounts with very different tax treatments. Even when maintenance isn’t part of the conversation, a realistic budget built before the settlement is signed, rather than guessed at afterward, is one of the more valuable things a divorcing spouse can walk into negotiations with.

  1. Dividing assets without accounting for the tax bill

Not all assets are taxed the same way when they’re divided, and treating a dollar in one account as equivalent to a dollar in another is one of the more common and costly mistakes in a settlement.

A 401(k) or a private-employer pension requires a Qualified Domestic Relations Order (QDRO), a separate court order that must be drafted correctly and approved before any portion moves to a former spouse without penalty. Government, municipal, and military pensions use a similar but differently named order, since QDROs are specifically a private-sector concept; the mechanics are similar, but the terminology and the plan administrator’s rules differ. IRAs work differently still and don’t use either type of order; they’re divided through a direct transfer incident to divorce. The distinction matters because if the account owner withdraws or cashes out funds themselves instead of transferring them properly, the owner, not the receiving spouse, is the one who owes the tax and any early withdrawal penalty. This catches people off guard often enough that it’s worth stating plainly: whoever pulls the money out is the one who pays for it.

Brokerage accounts carry their own consideration, since assets with significant embedded capital gains can trigger a tax bill whenever they’re eventually sold, even though the split itself may be tax-free at the time of transfer. And the shift in filing status itself, from married filing jointly to single or head of household, compresses the income brackets each spouse now falls into, which changes the real, after-tax value of every account in the settlement. None of this needs to be resolved perfectly in the moment, but it needs to be on the table before assets are divided, not discovered afterward.

  1. Keeping the home without running the full numbers

The marital home is often the largest asset in a settlement, and the decision to keep it or sell it tends to get made emotionally long before it gets made financially. One spouse, often the one who wants to stay for stability or the children’s sake, may not have the ability to refinance the mortgage or buy out the other spouse’s share of the equity on their own.

The tax picture matters too. The capital gains exclusion on a home sale is $250,000 for a single filer and $500,000 for a married couple filing jointly, so whether the home is sold while still married or after the divorce is final can meaningfully change the tax outcome. And when one spouse keeps the home while the other receives an equivalent dollar amount in retirement accounts, that’s rarely an apples-to-apples trade; retirement dollars carry an embedded tax liability that home equity doesn’t, so a fair comparison requires tax-effecting both sides of that trade rather than comparing raw balances.

Underneath all of it is the budget question from the first section: can this person afford the mortgage, taxes, insurance, and upkeep on their post-divorce income? Sometimes the answer is yes. Often, running the full numbers reveals that keeping the house becomes a financial drag that outweighs the emotional value of staying, and selling turns out to be the more stable long-term choice.

  1. Claiming Social Security before running the numbers

If a marriage lasted ten years or longer, a former spouse may be eligible to claim Social Security benefits based on the other spouse’s earnings record, sometimes resulting in a higher monthly benefit than claiming on their own work history would provide. That same ten-year marker also opens the door to survivor benefits if the former spouse later passes away, which follow a different set of rules and can pay meaningfully more than the spousal benefit alone. There’s more strategy available here than most people realize: it’s sometimes possible to claim one benefit, survivor or retirement, while letting the other keep growing through delayed retirement credits, worth roughly 8% a year up to age 70, then switch to the larger benefit later. Getting that sequencing right depends entirely on the numbers and circumstances involved, and claiming the wrong way, or at the wrong time, can permanently close off the more valuable option. This is worth modeling out well before the benefit is needed, not in the months leading up to it.

  1. Letting beneficiaries and estate documents lag behind the divorce

This is the most common oversight, and one of the hardest to undo after the fact. Life insurance policies, retirement accounts, wills, powers of attorney (both financial and healthcare), healthcare directives, and trusts often still reflect a marriage that’s already ended, simply because updating them wasn’t part of anyone’s checklist.

Minnesota has a revocation-on-divorce statute that generally cancels a former spouse’s beneficiary designation once the divorce is final. It’s a useful backstop, but it shouldn’t be treated as a substitute for updating these documents directly. Statutes vary by state, coverage gaps exist, and the smarter, more reliable move is always to update beneficiaries and estate planning documents yourself in the weeks after a settlement, not to rely on a law to sort it out later. If something happens before that update is made, it usually can’t be undone.

Why this matters regardless of process

None of these five decisions depend on whether a divorce is mediated, collaborative, or litigated. They depend on whether someone with financial expertise is looking closely at the numbers before paperwork gets signed, starting with a realistic budget and carrying through every account, asset, and document that touches it. That’s true whether that expertise sits at the table as a neutral financial professional working with both spouses, or as an advisor supporting one spouse and their attorney through the process.

If you’re the one navigating this transition yourself, it’s worth asking your attorney or financial professional directly whether each of these has been addressed before you sign anything. And if you’re an attorney or mediator working with a client through a gray divorce, these are worth flagging early, well before the settlement is drafted. Once a divorce is entered into the court record, very little of it can be revisited, aside from modifiable items like child support or spousal maintenance review, and ongoing compliance between the parties. That’s exactly why these five decisions are worth getting right the first time.

Mike Miller, CFP®, CDFA®, is the founder of Integra Shield Financial Group and a member of the Collaborative Law Institute of Minnesota. He works with individuals and families navigating retirement and divorce transitions. Anyone working through their own gray divorce is welcome to reach out. So are family law professionals looking for a financial resource for clients.

Advisory Services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Integra Shield Financial Group and Cambridge are not affiliated. Neither Cambridge nor Integra Shield Financial Group provide legal or tax advice.

About the Author

Mike Miller, CFP®, CDFA®, is the founder of Integra Shield Financial Group in St. Louis Park, Minnesota, and a member of the Collaborative Law Institute of Minnesota. He works with individuals and couples navigating retirement, gray divorce, and other major financial transitions, serving at times as a neutral financial professional in mediation and collaborative processes, and at other times as an advocate for one spouse working alongside family law counsel. Mike specializes in retirement income planning, Social Security optimization, and the financial complexities specific to divorce after 50. He’s a frequent speaker and educator on retirement income and financial well-being for both consumer and professional audiences.

Mike Miller, CFP®, CDFA®
Integra Shield Financial Group
Ph: (763) 201-1390
www.integrashieldfinancial.com