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The cost of a late split for the over 60s
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The rise in later life divorces is nothing new. Since the 1980’s the number of couples divorcing in their 60s has increased by almost 50%. However, a jump in over 60s divorces of 4% in the last two years has made it really important that older couples consider the pitfalls of ‘silver separations’. Fiona Lazenby, partner and Head of Family Law at Flint Bishop LLP, discusses the causes and consequences of the pensioner divorce.
It is interesting to consider the reasons why more and more people are pulling out of long-term marriage.
Over the last few years, the unexpected income pressures placed on retired couples by the economic downturn have been considerable. Many couples have seen their plans scuppered for a peaceful retirement, unable to realise a decent return on their investments or to sell their homes in order to downsize.
On the other side of the coin, many baby boomers are finding themselves with the sort of freedom they have not enjoyed since their youth. Free of dependent children and still enjoying good health, many 60-somethings see now as the ideal time to leave behind unsuitable partners and get the most out of life.
So is divorcing over 60 an easy option?
With no dependent children, the family home will usually be subject to a straightforward 50/50 split between husband and wife. Many retiree homes are also mortgage free. But whilst it seems over 60s divorces should be hassle free, there are definite downsides to ‘silver separations’.
In particular, over 60s should consider:
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Will they want to sell their home for a low sales price in the current depressed market? What are the options available when taking all the liquid capital into account?
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Do they realise that any Wills made previous to a divorce are invalid? They should review requirements under a Will as a matter of priority
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Are they prepared for reduced retirement capital when liquidating stocks and shares in a depressed market?
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How should the private pension funds built up in the relationship be shared?
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Will their state pension go up or down due to their new single status?
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Are there any health issues that fall for consideration in the overall distribution?
Any couple going through a divorce recognises that is it a hugely emotional time for all concerned. But with over 60s nearing or past the end of their working lives, the division of marital assets should be approached with a very clear head.
For advice on any of the above matters or any other divorce related issue contact Fiona Lazenby on 01332 226 174
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