Silver surfers are divorcing more often

Currently, 1 in 4 divorces involve couples aged over 50. The high proportion of later life divorces reflects wider societal trends. It is no longer unusual for women to have careers and financial independence. It is no longer necessary for people to stay in loveless marriages, especially once adult children have left home. An increased life expectancy is also a contributing factor, with potentially decades of good health ahead, following retirement. Other reasons cited include the lack of stigma now attached to divorce.

Getting a divorce is never easy, but it may be especially daunting in later life, when you have potentially been with someone for a long time. It may feel like you are starting all over again. It is important to seek specialist advice about the financial implications of separating at an early stage.

Before reaching any agreement, each party should provide the other with full details of their financial circumstances. It may take some time to reach a financial agreement with your spouse and you will need to be prepared for an in depth process. I will always look to negotiate an agreement which meets a client’s needs. Most of the time, a client’s priority is to ensure they are able to afford a new home and have an income to support their new life.

With a long marriage, the starting point is usually an equal division of the capital assets and pension assets. It may also be necessary for a maintenance award to be put in place if, for example, the parties are still of working age and there is a significant disparity of income.

With capital, this will often mean looking at how to divide equity in the family home. In practical terms, the family home may need to be sold in order to provide each party with sufficient capital to rehouse.

In many divorces involving retired couples, pensions are the main source of income. With pensions, equality can be achieved by a pension sharing order. Whilst the basic state pension cannot be shared on divorce, the additional state pension can be subject to a pension sharing order, as can an occupational pension. Another option is offsetting, where one party takes a greater share of the capital assets in lieu of pension sharing.

Following a divorce, new wills should be drafted. It is important to ensure that a will reflects an individual’s wishes in terms of who should benefit from assets post-divorce. There are also Inheritance Tax consequences to consider and advice should be taken as a divorce means that a couple loses the right to transfer assets between them.

Divorcing in later life can be simple and straight forward, so long as the appropriate steps are taken and legal advice is obtained at an early stage. It is never too late to lay the foundations for a new life. Wilson Browne can assist you in laying those foundations.

For simplified advice and clear guidance contact our team on 0800 088 6004.
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