Facing a ‘grey divorce’? Make sure you get a fair settlement
TV presenters Eamonn Holmes and Ruth Langsford are to end their marriage – the most recent example of what’s become known as ‘grey divorce’.
Both 64, they are part of a new demographic – the growing number of couples in their 50s and 60s deciding to separate at a time when, overall, divorce rates are declining.
The most up to date 10-year data published by the Office for National Statistics, shows the number of men divorcing aged 65 and over is up by 23% and the number of women divorcing of the same age by 38%.
What’s the outlook for grey divorcees?
Recent research by financial services provider, Legal & General, reveals a trend of financial inequality and insecurity for later life divorcees, also known as ‘silver splitters’:
- Just 11% of divorcees over 50 take pensions into account when it comes to their financial agreement. Pensions, which are never in joint names, are potentially incredible valuable assets yet frequently overlooked.
- Rather than seeking independent financial advice, twice as many separating couples turn instead to family and friends for advice.
- 26% say they are financially worse off after their divorce.
- 21% say their retirement lifestyle has been negatively affected by their divorce.
How do you make sure your grey divorce is fair?
As most silver splitters are either retired or contemplating retirement, it is especially important to consider the assets that have been accumulated during a frequently long marriage including property, pensions and investments.
Often, in relation to the assets, there are concerns that these are either held in the sole name of one party or that one spouse made a greater financial contribution, for example during the time when any children were young.
This shouldn’t be considered a deterrent. After a long marriage, the Court’s ultimate aim is to seek a resolution that is fair and reasonable in the circumstances.
The starting point is a 50/50 split and in most cases, financial contributions and those to the family or bringing up children, are valued equally.
Why is legal advice important?
Taking legal advice when you divorce doesn’t need to be expensive and could mean the difference between a fair settlement and losing out on thousands in the long term.
This is the clear message from a recent report, led by the University of Bristol, which found that many ordinary divorcing couples today are opting to cut divorce costs by sorting out the housing, pensions and any ongoing maintenance themselves.
According to the Fair Shares Project, this means that women in particular are missing out financially because their divorce settlement does not take into account all the available assets, including, crucially, their ex-partner’s pension.
It’s crucial to tie up all the all financial matters, including pensions, before applying for the final order (what used to be known as the decree absolute) to ensure you have a legally enforceable settlement for the future.
Get in touch
It’s vitally important all older couples considering divorce get independent legal advice before entering into an agreement with their spouse in relation to the division of assets.
We offer, where appropriate, a free initial half hour consultation to explain the divorce process clearly, outline all your options and help you make a plan going forward.
In addition, we have a range of divorce fixed fee packages we can discuss with you at your consultation.
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