Head of Family Law, Jenniffer Brunt, says later-life divorce brings a unique set of challenges around pensions, property, inheritance and retirement planning that many couples fail to prepare for. Drawing on her expertise, she highlights the key considerations facing couples when navigating this life-changing decision.
Official statistics have captured the rise of the 'grey divorce'. with divorce among couples aged 65 having more than doubled since the 1980s. Head of Family Law at Slater and Gordon Jenniffer Brunt says later-life divorce brings a unique set of challenges around pensions, property, inheritance and retirement planning that many couples fail to prepare for.
Whilst this can provide an opportunity for a fresh start, it can also bring complex and unique considerations. Jenniffer Brunt has more than 20 years’ experience supporting couples deciding to divorce, including those separating later in life. Drawing on her expertise, she highlights the key considerations facing couples when navigating this life-changing decision.
"Deciding to divorce later in life can mean more complicated decisions across finances, property, assets and pensions, as well as future planning. This decision is rarely taken lightly, especially after building a life together.
"Early preparation often gives couples greater clarity around their financial position and future plans, helping them make informed decisions throughout proceedings."
Having early discussions with family
" In a long-term marriage, family relationships have developed over many years, and an open dialogue can keep people informed and create a network of support.
"Constructive discussions with your partner can establish priorities, resolve disagreements efficiently and prevent unnecessary conflict during divorce proceedings. By working more collaboratively you can keep things more amicable and keep costs lower.
"Although child arrangement issues are less like to arise in later life divorce proceedings, adult children can still be affected in some way or another. Open communication can manage expectations and provide reassurance during a time of uncertainty and change."
Having early discussions with specialists
"Importantly, seeking early legal or financial advice can early in the process can allow for a smoother divorce process.
"As family solicitors, we have a responsibility to support clients every step of the way. Early advice allows solicitors to assess circumstances, understand options and provide tailored guidance based on what can be achieved as the best outcome.
"Alongside legal support, a financial advisor can support individuals understand their financial situation from assets to retirement income and future financial plans.
"For couples who have for years managed joint finances, a financial advisor can provide clarity and guidance on managing money independently."
Pensions
"Pensions are surprisingly overlooked, but it is one of the most valuable parts of divorce.
"In a long-term relationship that has lasted decades, divorce proceedings will also consider the pensions accumulated during this time. This can form part of the financial settlement, divided between spouses. A full pension valuation can be at the core of a fair divorce settlement.
"It may be that a Pension Sharing Order is explored as an option, which transfer a specific percentage of one partner's pension pot into a new or existing policy in the name of the other.
""Options can include pension sharing, where part of one spouse's pension is transferred to the other, or offsetting, where one party keeps more of their pension while the other receives a larger share of other assets, such as the family home."
"Seeking specialist advice early with a lawyer can ensure all decisions are well-informed and guided."
The family home
"One of the largest assets to consider is the family home, however there is no set rule with what happens with the property. The court will consider a range of factors including whose name appears on the title deeds, mortgage contributions, housing needs and future earning capacities.
"Some couples may sell the property and divide the proceeds, while others may agree that one person remains in the property and the other receives their share at a later date."
"Keeping the family home may be the attractive option, but decisions should be considered alongside future plans around retirement, pension provision and future financial security."
Exploring inheritance
"When it comes to inheritance, there isn't a simple rule that an inherited asset, such as a property, investments or money, is automatically protected from a divorce settlement. Divorce proceedings will consider how the inheritance was received, used or treated during the marriage, as the well each party's financial needs.
"The main course of action for inheritance is reaching a fair financial outcome. With inheritance, it can also mean looking at property ownership, wills and estate planning as well as what will happen to the assets following death."
Preparing documents
"Following a long-term marriage, there are many factors to consider and often this can be more complex than first assumed. Gathering appropriate documentation, such as banking documents or property certificates, can help further down the line by reducing uncertainty, save time finding correct information and make the process much easier to navigate."
Updating wills and estate plans
"During divorce proceedings, considerations should also be given to what will happen to assets following death.
"It is well advised for separating partners to review their Wills, estate plans, beneficiary nominations and powers of attorney as soon as possible. Without a Will, certain assets will not be automatically passed on, such as pensions and life insurance policies.
"Not only does this ensure assets will pass to nominated beneficiaries but, most importantly, it protects loved ones in the future by preventing unintended consequences if personal circumstances have changed.
"Planning for the future is equally as important as navigating divorce proceedings and provide greater confidence during this next chapter."
Moving forward
"Divorcing later in life can seem like a very daunting chapter. However, with the right preparations, early discussions and considerations, this can be a very empowering time for you and your former partner when seeking a new path forward.
"By seeking specialist advice early, they can provide clarity and a peace of mind about your circumstances and how you can make informed decisions for the future."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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