Silver Splitters: Divorcing Later in Life

The divorce rate for couples in their 50s and 60s is rising. This trend is often referred to as ‘silver splitters’ or ‘grey divorce’. As more people are living longer and expectations for relationships change, more people are choosing to separate later in life. Here we explore the financial and legal considerations of divorcing later in life.

A ‘silver splitter’ refers to someone who is divorcing and ending a long-standing marriage when they are older – in their 50s, 60s, or older. The coining of this phrase highlights the increasing number of older couples choosing to separate. In doing so they may often face concerns about financial settlements, property division, and their retirement planning.

After a long marriage, one or both spouses may have different visions for their future. With people living longer, some couples may feel they have more time to seek fulfilment after a divorce. For some empty nest syndrome may also play a part: when children grow up and leave the home it can lead to a reassessment of a relationship.

The division of assets can be a major concern in a grey divorce. Finances are often deeply interconnected when couples have married for a long time. The divorce process will aim to achieve fairness, and this often means an equal division of assets following a long marriage. However, there are also factors such as health and future needs which may need to be considered.

Pensions can be one of the most valuable assets in a divorce. There are several ways pensions may be divided. A Pension Sharing Order allows for a percentage of one spouse’s pension to be transferred to the other, creating a separate pension pot. With Pension Offsetting instead of splitting the pension, one spouse may receive a greater share of other assets, such as property or savings, to compensate. Finally, a Pension Attachment Order is an arrangement which provides a spouse with a portion of the pension benefits when they are paid out, though this is less commonly used now as it does not allow for financial independence.

The marital home will be a significant asset. Who gets the house will depend on financial needs. In many cases, the house will be sold and the proceeds divided fairly. Another option is for one spouse to buy out the other’s share if they wish to retain the property. However, if one spouse has a lower income or is in poor health, they may be granted the right to stay in the home. Some older couples now opt for a ‘nesting’ approach, where they keep the house for the benefit of grown children, with each parent living there at different times.

It can be complicated to negotiate a financial settlement in later-life divorces and to ensure a fair outcome, we would recommend that couples consult a family law solicitor. Separating couples may wish to consider mediation as this can be an effective way to reach an amicable financial settlement without lengthy court proceedings. It is important to have full financial disclosure to ensure assets are divided fairly. You also need to consider the long-term impact of financial decisions, especially regarding pensions and retirement.

Your divorce will affect your will. In England and Wales, once a divorce is finalised any reference to an ex-spouse in a will is treated as if they had died. If they were named as an executor or beneficiary, they will no longer inherit. If a new will is not made, intestacy rules apply, which may not reflect personal wishes. Therefore, it is essential to update your will post-divorce to ensure assets are distributed according to your wishes.

You may think about setting up a trust which will protect your assets and ensure they are passed down to children. If you choose to remarry after a divorce later in life, you can consider a prenuptial agreement or postnuptial agreement which can help safeguard assets.

Whatever you choose to do, it is crucial to update your will, pension, and inheritance plans to help secure future financial stability.

Divorcing later in life can present financial challenges but with the right approach and professional legal advice you can ensure a fair financial settlement, protect future assets, and plan for a secure and fulfilling future. If you are considering a grey divorce, consulting a family law solicitor can help you make informed decisions tailored to your circumstances.

Ready to take the next step? As leading divorce solicitors in Milton Keynes, our team of family law specialists can advise and guide you from the moment we start working with you. As well as our head office in Milton Keynes, we also have offices in Watford and London. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.