Grey divorce or silver separators are terms referring to the rising rate of older adults getting divorced. According to figures from the Office for National Statistics (ONS), the number of men applying for divorce at 65 and above increased by 23% between 2005 and 2015. There was an even bigger increase of 38% for women of the same age bracket.
The rise of the silver separators and grey divorce
Some couples are now marrying later in life. Others have had financial independence during their marriage. The social stigma of divorcing has become less prevalent and, with life expectancy increasing, more people are considering what they really want in retirement.
Some have waited for their children to settle into their own lives before making the decision to divorce. Others remained tied in unhappy marriages for religious and cultural reasons.
Separating without a divorce
Options are available for those who do not wish to ‘divorce’. Judicial Separation is one option as is entering into a Deed of Separation. Judicial Separation allows couples to resolve most of their financial affairs on separation in a legally binding way and separation agreements can be drawn up to record an agreement made between the parties in relation to their finances without the need for divorce proceedings.
There can be a financial downside to these routes. Pensions cannot be shared and couples may be exposed to future claims made by their estranged spouse. Issues can rise in the future after the parties have moved on with their lives. Further, separation agreements are not legally binding or enforceable in the Family Courts.
How does a divorce differ for older couples?
The role of the Family Court is to identify what assets form part of the matrimonial pot, value them and divide them fairly. Although the starting point is an equal division of assets, there are a number of factors which could affect the sharing principle, such as the needs of one party.
There are a number of factors which silver separators will need to consider:
- Income – How will they pay their bills and outgoings, particularly if their income from employment is shortly coming to an end? Is maintenance going to be required? Should the maintenance be capitalised?
- Housing – If their income during retirement is likely to reduce, the parties may require a mortgage-free home particularly if they have little to no mortgage-raising capacity. Downsizing may be necessary, particularly if the children have also moved out.
- Liabilities – If there are matrimonial debts, how should those be repaid or divided? Some creditors will reduce the outstanding sum if the debt can be repaid in one lump sum.
- Pensions – Should pensions be shared to achieve an equal income at retirement? Would one party prefer a pension offset for a larger share of the house? What are the characteristics of the pensions involved?
Other considerations
As well as finalising the divorce and financial matters, the following should be considered:
- Wills – updating your Will is crucial to ensure your wealth is going to your choice of beneficiary.
- Cohabitation Agreements – for those who wish to form a new relationship but not enter into a marriage.
- Pre-nuptial Agreements – re-marrying after the age of 60, some may wish to preserve their wealth for their children in the event of a divorce.
How can we help?
Emma Davies is a Partner in our expert Family Law team. At Nelsons, we can advise you upon a number of factors including:
- Understanding your needs and advising upon the best route for you;
- Assisting with negotiations to reach a settlement at the earliest opportunity as to preserve as much wealth for you as possible; and
- Pointing you to the right person to provide any additional services you may require.
Our team prides itself in empowering its clients and will ensure you are fully equipped with the necessary knowledge before you proceed with your decision.
For further information, please contact Emma or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.
Contact Us