Later life divorce – financial and legal issues
Later life divorce has become far more common in recent years.
According to the Office for National Statistics, the most recent 10 years of data shows a 28% fall in the overall number of divorces. But the divorce rate for those over 65 the rate has increased by 23% in the same period. So why is this the case?
Later life divorce – why the increase?
Why are adults choosing to divorce in later life.? Reasons may include:
Life expectancy has increased considerably over the last 50 years. People are living longer and having better health into old age. As such, a longer life may equate to more opportunity to have more than one marriage.
Retirement – With increased life expectancy, there is the opportunity for a longer retirement. It may be that once retired, couples realise they have drifted apart or want different things from life.
No stigma – With 42% of marriages now ending in divorce, there is less stigma attached to divorce than in previous generations.
Health & wealth – The over 60s are more likely to be still working and more able to support themselves outside of marriage. Coupled with that, women often have more financial independence than previous generations.
Older Children – Children are now adults and no longer financially dependent on their parents. Couples can, therefore, focus more readily on themselves and make independent decisions about their relationship.
Legal & financial considerations
Many of those deciding to get divorced in later life will have been married for a considerable length of time. What are the special considerations for this group?
Multiple assets – Couples divorcing in later life may have built up assets in addition to the marital home, such as investments, second properties. There may be investments in joint names that need to be reallocated. There may even be a family business to deal with. So, good financial planning is essential.
Moving house – Deciding who lives where is a key concern in any divorce. If selling a property, there may be Capital Gains Tax implications. Additionally, future mortgage capacity is essential to think about as age will impact on this.
Pensions – The pensions of both parties are significant assets to consider. Legal advice is recommended to ensure pension entitlements and rights are protected.
Wills & inheritance planning – It will be important to revisit any existing Wills and make necessary changes. Inheritance tax planning also comes into play here.
For legal support and advice on later life separation and divorce, contact one of our Separation and Divorce specialists:
Tony Neocleous
E: tneocleous@bird-lovibond.co.uk
T: 01895 256151
Michelle Everest
E: meverest@bird-lovibond.co.uk
T: 01895 636037