The rise of grey divorce and why more couples are separating later in life

Sponsored

In recent years, there has been a significant rise in so-called “grey divorce” - the separation of couples aged 50 and over, often after decades of marriage.

While every relationship is unique, the increase in later-life divorce reflects wider social and economic changes. People are living longer, leading healthier lives and are less willing to remain in unhappy relationships for what could be another 20 or 30 years. At the same time, divorce carries far less stigma than it once did, and the introduction of no-fault divorce has made the legal process more straightforward and less confrontational.

Financial independence has also played a role. Many women now have careers, their own pensions and greater economic autonomy than previous generations. This can make the decision to separate more viable than it might once have been.

Another common trigger is the “empty nest” stage. Once children leave home, couples may find they have grown apart. Without the shared focus of raising a family, underlying differences can become more pronounced.

Whatever the reasons, grey divorce presents distinct legal and financial challenges. Couples separating later in life are often dealing with intertwined and substantial assets, long-term pension provision and imminent retirement. Careful planning is essential to ensure both parties remain financially secure.

Key priorities in grey divorce

Pensions are often the most valuable asset

For many couples in their 50s and 60s, pensions are the largest asset in the marriage and are sometimes worth more than the family home. Yet pensions are frequently overlooked or undervalued in divorce negotiations.

There are different ways pensions can be dealt with, including pension sharing orders (which divide the pension at source), offsetting (where one party keeps the pension and the other receives a larger share of different assets), or attachment orders.

If pensions are highly valuable and/or there are defined benefit schemes (often these schemes are public sector pensions including NHS, Teachers and Army Pensions), it may be necessary to obtain specialist advice.

Failing to address pensions properly can leave one party with significantly reduced income in retirement. Ensuring pensions are given proper consideration is critical.

Property and housing

The family home is often both a financial and emotional focal point. Decisions must be made about whether to sell the property, transfer ownership to one spouse, or retain it jointly for a period of time if circumstances necessitate.

Housing choices need to be realistic and sustainable. Downsizing may release capital, but ongoing costs and retirement income must be carefully considered. Emotional attachment to the home should be balanced against long-term financial security.

Spousal maintenance

In longer marriages, particularly where one spouse has sacrificed career progression to raise children, there may be a disparity in income and pension provision. Spousal maintenance can help address this imbalance.

Courts consider factors such as age, health, earning capacity and the length of the marriage when considering spousal maintenance. However, many settlements aim for a “clean break” where possible, allowing both parties to move forward independently without ongoing financial ties. Achieving this often requires careful restructuring of assets.

Tax and retirement planning

Divorce can affect tax liabilities, state pension entitlement and eligibility for certain benefits. The division of assets, in particular savings, investments and ISAs should be reviewed to ensure that they are done in the most tax efficient way. Specialist tax advice may be required.

It is also vital to update wills, powers of attorney and beneficiary nominations following divorce to ensure your estate planning reflects your current wishes.

Family dynamics

Grey divorce often involves adult children and, in many cases, grandchildren. While there are usually no child arrangements to resolve, emotional considerations remain important. Open communication and, where appropriate, mediation can help preserve family relationships during what is inevitably a difficult transition.

Moving forward with confidence

Later-life divorce can feel daunting. Couples are not just separating their lives, but untangling decades of shared finances, plans and expectations. However, with early advice and careful financial planning, it is possible to achieve a fair outcome that protects both parties’ futures.

At Harrogate Family Law, we understand the complexities of grey divorce and the importance of securing long-term stability. Specialist legal guidance, particularly around pensions and retirement planning can make a significant difference in helping individuals move forward with clarity and confidence into the next stage of life.

Speak to a Specialist

If you are considering separation later in life, or would simply like to understand your options, taking early advice can make all the difference, particularly when pensions and retirement planning are involved.

To discuss your situation in confidence, contact Charlotte Davies at Harrogate Family Law, who can guide you through the process with clarity, sensitivity and practical expertise.

Getting the right advice now can help you move forward with confidence and long-term financial security.