Divorce guide for the over 50's

Government statistics indicate a rise in divorce rates among individuals over 50, commonly referred to as 'grey divorce.' While divorce can be challenging at any stage of life, older adults facing 'grey divorce' may encounter additional considerations.

In this article, we delve into the factors contributing to this trend, examine the distinct challenges encountered by individuals going through later-life divorces, and offer practical tips for successfully navigating the process.

Why is there a rise in over 50's divorcing?

There are various factors contributing to the increasing number of older individuals who are considering divorce these days.

Divorce has shed much of its former stigma, leading individuals to feel less apprehensive about ending relationships. As a result, people are more inclined to separate rather than stay in unhappy marriages merely to maintain appearances.

As life expectancy increases, many couples are taking the time to re-evaluate their relationships and contemplating whether they wish to spend their remaining years together.

As couples experience the freedom that comes with adult children and reduced financial pressures, they may be more inclined to consider separation.

Nevertheless, getting divorced later in life introduces its own set of complications. Factors like pensions, property ownership, and retirement planning can render the process significantly more complex compared to divorces involving younger couples. It is crucial to seek legal guidance early to prevent expensive errors and secure a just settlement.

Assets in a ‘grey divorce’

Divorce is difficult experience at any age, but for the over 50s, careful consideration needs to be given to the matrimonial assets to ensure financial security for both parties as they adapt to a new life.

When distributing the marital assets; your solicitor or the court will look at the parties ages, length of marriage, the standard of living enjoyed during the marriage, their personal circumstances, and financial resources available such as family home and pensions to meet their needs.

Depending upon the assets available, the main focus will be to try and ensure both parties housing, income needs, and retirement plans are met. For example, if one party has a small pension or no pension because he or she did not pursue a career and took care of the family, then this will be taken into consideration when dividing the marital assets and they may receive a share of the other party’s pension to make the financial settlement fair.

In cases of grey divorce, potential complications could arise if the couple married later in life or if one or both spouses had previous marriages. There may be disagreements regarding which assets, including money and property, are considered pre-marital and what should be included in the marital estate.

This is where a prenuptial agreement (prenup) potentially becomes relevant. While prenups are not legally binding in England and Wales, their popularity is on the rise, particularly among individuals marrying later in life or those entering subsequent marriages. They serve to safeguard assets and ensure that property and inheritance remain designated for children from previous unions. Prenups outline all the couple's assets, detailing what each party brings into the relationship and how these assets will be handled in the event of a marriage breakdown.

It may assist to seek advice from an independent financial adviser or pension adviser to help you better understand the options available to you for a smoother transition to financial independence.

Pensions in Grey Divorce

Pensions are frequently overlooked during divorce negotiations, often perceived as too complicated. Additionally, many divorcees, particularly women, may be unaware that pensions should be included in the settlement. However, pensions frequently represent one of the couple's most significant assets.

In certain grey divorces, pension issues can become quite complicated, especially when the funds are unevenly distributed or if one or both partners have begun to withdraw from their pension plans.

If pensions are currently being paid out, they can still be divided as they would have been previously. However, certain restrictions apply, and it is not possible to withdraw a lump sum from a pension that is in pay out status or from one that has been used to buy an annuity.

If you or your former spouse are retired and receiving pension payments, it is strongly advised to seek both legal and financial guidance on the most effective way to divide those assets during the divorce process.

How can Hegarty help?

Grey divorces present distinct challenges that necessitate professional legal guidance. From dividing pensions and navigating intricate financial settlements to planning for retirement, a solicitor plays a crucial role in safeguarding your interests. They also help prevent expensive errors and provide support during what can be a challenging and overwhelming journey.

At Hegarty, we have expertise in guiding clients through the intricate process of divorce. Our dedicated family law team recognises the specific challenges associated with later-life separations and is equipped to offer clear, practical advice tailored to your situation.