Divorcing in your golden years
Whilst divorce rates are falling for younger couples, who increasingly choose not to get married, the divorce rate for both men and women over the age of 65 has increased significantly in the past 10 years. Whether couples are choosing to separate because divorce is now considered more acceptable, their children have flown the nest, or they simply want different things out of life, later life divorce is an undeniable reality for many couples. Divorce is difficult at any time but there are additional factors to consider for people approaching retirement age or people who have already retired.
What will happen to my pension if I divorce later in life?
One of the most important factors to consider will be how to divide the pensions on divorce. Due to women taking career breaks, all too often the wife’s pension pot is often smaller than the husbands. The older people get, it is not surprising that their pensions also become more important to them. Depending on the value and type of pensions, it will usually be necessary to instruct a pension expert to prepare a report as to how the pensions (including state pensions) can fairly be divided on divorce. This may involve obtaining a report on how the pensions should be shared between you to achieve equality of income upon your retirement.
What other factors will it be important for us to consider?
Housing will need to be considered and specialist advice taken from a mortgage broker if there is not enough money in the matrimonial pot to buy two houses. There are some lenders who will lend beyond retirement age, but a mortgage broker will be able to advise further on this. In some circumstances it may also become necessary to consider equity release.
How will we reach an agreement?
Mediation or Collaboration approached are often effective options to help reach an agreement on the division of the matrimonial assets. Both options are generally less expensive than Court proceedings and allow both parties to have greater control over the process. An agreement can also be reached much faster than through the Courts where there are long delays and difficulties securing Court hearings.
My husband has also managed our financial affairs. How will I cope?
Your solicitor will help guide you as to how to locate the information and documents you need to provide and can ask your husband to provide documentation to help you understand what is in the matrimonial pot. If you decide to mediate or collaborate then again you will be given help within this process as to how to collate the relevant information. It may also be helpful to engage the services of an independent financial adviser to help with future budget planning if this is something you have not had to manage before.
My children want to help, should I let them?
It’s a time in life when the roles can sometimes become reversed but it’s always best not to rely too heavily on children even if they are adults. They have one mum and dad where possible it is hoped that these relationships can be maintained even where one party does not want a divorce. Rely on friends and, if necessary, engage the support of a divorce coach, counsellor or other professional.
I’ve found someone new and I’m thinking about remarrying. What should I consider?
If you plan to remarry then it may be useful to have a discussion with a family solicitor about entering into a pre-nuptial agreement. It would also be sensible to meet with a private client lawyer for advice on estate planning and making a Will to ensure that the interests of children and/or grandchildren can be protected.
Our Family Team experts, Sue Wardropper and Sam Ellis are here to help.
For more information on our range of legal services, please call the team on 01473 611211 or email [email protected]