A major concern of divorcing couples approaching retirement age is preserving the financial stability they’ve worked so hard to build over decades.
Here’s what you need to know about safeguarding your retirement savings during a grey divorce (aka divorce over 50) and how Lander Solicitors Queensland can help guide you through this complex process.
Financial risks to retirement savings during a grey divorce
Here are some key risks you should be aware of:
– Division of superannuation:
Superannuation is included as a class of asset/resource of the property pool that can be divided during a property settlement following a separation. This means a portion of one party’s super can be transferred to the other to achieve a fair settlement. While this ensures equity, it can significantly impact your retirement funds.
– Ongoing litigation costs:
Property settlement proceedings, especially those that are drawn out and lengthy, can be expensive. Many people don’t realise how much ongoing litigation can drain their financial resources. The longer a case drags on, the more it eats into both parties’ savings, further reducing retirement funds.
– Exposure of joint accounts:
If you and your partner share joint savings accounts, your retirement savings could be vulnerable if there isn’t mutual trust/respect. Without precautionary steps, funds could be accessed or withdrawn unexpectedly. Leaving a smaller pool to be divided at settlement time.
– Property title disputes:
If your name is not on the title of a property, you could face challenges in securing your share. This is especially important when trying to protect significant assets like your home. It is important to obtain legal advice as soon as possible to explore steps that can be taken to protect your interests.
At Lander Solicitors Queensland, we specialise in helping clients manage these risks, so you can keep your retirement savings safe between separation and settlement.
Post-separation superannuation split: safeguard retirement savings during property settlement
The best way to protect your retirement savings is to have a great team you can trust. We recommend contacting us and also seeking advice from a financial advisor to help you plan for your post-separation financial future. Together we can implement the right strategies to help maintain your financial security once the dust has settled.
There are a few other things to keep in mind:
– Be practical:
Understand that the goal is to reach a fair and equitable outcome. Sometimes, parties focus too much on “winning” rather than securing their financial future. Keep the bigger picture in mind.
– Know the costs:
Litigation can be costly, and many people underestimate the financial toll it takes. Post-separation property settlement cases can take up to two years to reach trial, so understanding the potential costs of ongoing litigation is essential.
– Freeze joint accounts:
To avoid any unwanted surprises, consider freezing any joint accounts you share with your spouse. This will protect your retirement savings from being depleted before a settlement is reached.
– Place a caveat on property:
If your name is not on the title of your property, placing a caveat on it can prevent the asset from being sold or transferred without your knowledge. We strongly recommend seeking legal advice when considering lodgement of a caveat as the person lodging the caveat can be sued for damages if the caveat causes a loss to the person/entity that has their name on the title.
– Consider a prenuptial agreement:
If you’re planning to or thinking of entering a marriage later in life we often recommend a prenuptial agreement. This will prevent any major loss of assets should the marriage come to an end. We also recommend prenuptial agreements for anyone who has significant assets, regardless of age.
Grey divorce and superannuation: how to protect your retirement savings
The first step to protecting your retirement savings is contacting Lander Solicitors Queensland for a consultation. We offer the expertise, guidance and support you need to ensure your assets and superannuation are protected. Book your initial consult today.
DISCLAIMER – The information provided in this blog is general and does not consider your individual legal needs or objectives. It does not constitute personal advice and is for informational purposes only. We recommend seeking out professional and independent legal advice from a qualified Australian lawyer to advise on your individual situation before acting on any information contained below. Lander Solicitors Queensland accepts no express or implied liability for negligence or contractually for reliance on any information provided. Liability limited by a scheme approved under Professional Standards Legislation.
