Securing Financial Stability in Grey Divorce
The term “Grey Divorce” refers to the growing trend across North America of individuals over the age of 50 ending their marriages, sometimes after decades together. While divorce is a significant life event at any age, Grey Divorce carries unique financial implications, especially considering the stage of life and the length of the marriage involved.
At Jones Divorce and Family Law, we are familiar with the unique challenges an aging client faces when it comes to the breakdown of their long-term marriage. Grey Divorce has significant financial implications as parties have been building their financial portfolios for decades, and many are preparing for life on a fixed income as they near or enter retirement.
This article will examine the financial impacts and considerations of Grey Divorce and how our experienced family law lawyers can help you through this challenging time of your life.
About Grey Divorce
The average age at divorce has seen an increase over the past decade and currently sits around 46 years old. The phenomenon of couples divorcing later in life has come to be known as “Grey Divorce” and is attributed to changing societal norms and increasing life expectancies.
Reasons for Grey Divorce
This kind of separation is often seen among couples who have entered the ’empty nest’ phase, where their children have grown and moved out, prompting a reevaluation of their marital relationship.
In instances where one or both partners in the marriage find themselves dissatisfied, the prospect of spending another 30 to 40 years in retirement together may seem daunting, leading them to seek a different path for their future. Other common reasons for a Grey Divorce include gradually falling out of love or realizing that they have grown apart from their spouse over the years.
Financial Considerations in Grey Divorce
Grey Divorce brings with it several financial considerations. These aspects are particularly pivotal due to the stage of life and duration of the marriage:
- Division of Property – The division of property can become complex due to the significant assets accumulated throughout the marriage. These assets are often intertwined, necessitating a careful and thorough evaluation to ensure equitable distribution between the parties.
- Retirement Planning – Those nearing or in retirement must reassess their retirement budgets, goals, and plans. If one spouse was primarily a breadwinner while the other was a homemaker, there could be disparities in Canada Pension Plan contributions, which are subject to equal division post-separation.
- Estate Planning Post-divorce – It’s essential to reconsider the beneficiaries on life insurance policies and investments. Updating wills is a crucial step to reflect new circumstances. Grown children’s expectations and financial dependencies might influence estate decisions.
- The Matrimonial Home – Often the largest asset, decisions about selling the home, splitting proceeds or one spouse buying out the other are critical – considerations for future living arrangements, whether downsizing or renting, must also be made.
- Insurance Needs – Securing personal health coverage becomes necessary if one spouse depends on the other for health insurance. Life insurance policies may need updates to cover end-of-life expenses and outstanding debts.
Seek Professional Guidance
Navigating the complexities of a Grey Divorce requires emotional support and professional guidance. This is where the expertise of family law professionals becomes invaluable. They can provide the necessary legal advice and support, ensuring that all financial aspects are addressed thoroughly and equitably.
This support can be especially valuable for women as its consequences present unique challenges and considerations for them. To learn more about the impact Grey Divorce can have on women, refer to this article: 7 Tips For Women Experiencing Grey Divorce Later In Life
How Jones Divorce & Family Law Can Help
Grey Divorce presents unique financial challenges that require careful consideration and planning. Understanding the full extent of marital assets and liabilities, the nuances of retirement and pension plans, the need for adequate spousal support, and the implications for estate planning are all critical components of navigating a Grey Divorce successfully.
Our lawyers at Jones Divorce & Family Law can provide invaluable support and guidance during the process of a Grey Divorce. Our skilled and experienced divorce lawyers understand the intricacies of family law in Calgary and can advocate for your rights and interests.
Proper guidance and planning can make all the difference in securing a stable and secure financial future.
The content provided in the blog posts of Jones Divorce & Family Law is general information and should not be considered legal advice. Please contact a lawyer for legal advice tailored to your specific situation. All articles are current as of their original publication date.
