Divorce at any stage in life can be emotionally and financially draining, but for those over 50, aka a “grey divorce”, the challenges often take on a different tone. As couples approach or enter retirement, they face unique concerns when it comes to dividing their assets and the financial security of their golden years.
At Lander Solicitors Queensland, we understand these challenges and are here to help you navigate them with confidence and clarity. Here’s a look at some common issues people face when going through a divorce later in life—and how we can help you address them.
Common challenges of dividing assets in a grey divorce and how to address them
Divorce at any stage in life can be emotionally and financially draining, but for those over 50, aka a “grey divorce”, the challenges often take on a different tone. As couples approach or enter retirement, they face unique concerns when it comes to dividing their assets and the financial security of their golden years.
At Lander Solicitors Queensland, we understand these challenges and are here to help you navigate them with confidence and clarity. Here’s a look at some common issues people face when going through a divorce later in life—and how we can help you address them.
Grey divorce challenge #1: The Family Home and Superannuation
For many over 50, the family home and superannuation are the largest assets. Dividing these can lead to insecurity about future housing and financial stability. People may fear that they won’t be able to keep the home they’ve lived in for decades or wonder how they’ll manage on a reduced superannuation balance.
Additionally, borrowing money to purchase a new home after divorce becomes much harder for older individuals, especially if they’re no longer in full-time employment or they are relying on a pension. There’s often a real concern about whether their income and superannuation will be enough to cover basic living expenses post-divorce.
Grey divorce challenge #2: Legacy and Inheritance
Divorcing couples in their 50s and beyond may also have strong desires to protect their legacy, specifically through inheritances for their children.
Protecting assets intended for future generations becomes a priority, often complicating the division of property, as one or both parties may want to ensure that their children still benefit despite the separation.
So, what might property settlement look like in a grey divorce?
Income potential
Adjustments based on income-earning capacity may be less significant since neither party may work full-time. Instead, the focus may shift to who needs more support to cover medical expenses or day-to-day living costs going forward.
Superannuation
Super plays a huge role in grey divorce property settlements. As one of the biggest assets for older couples, it’s included in the pool of assets to be divided. Superannuation splitting orders allow one party’s superannuation to be apportioned to the other, but this is a complex process, particularly when one party’s superannuation balance is significantly larger than the other’s.
Non-financial contributions
Non-financial contributions, such as homemaking or caring for children, are also factored into the settlement process. In grey divorces, these contributions might not just include caring for young children but also for older or adult children, as well as grandchildren.
For example, if one party was the primary homemaker while the other worked, this non-financial contribution will be considered when dividing assets. Even assistance from extended family, like grandparents, who helped care for children during the marriage, can be acknowledged in the settlement process.
Property settlement misconceptions for individuals over 50
One common misconception is that the value of the property pool will be assessed at the time of separation, but in fact, it’s valued at the time of settlement. This means that any changes in assets between separation and settlement, such as one party selling off property or withdrawing from accounts, may not automatically be added back to the pool for division.
Many also assume that superannuation cannot be touched by the other party during divorce, but super is considered part of the property pool and can be divided between the parties to reach an equitable settlement.
Being realistic about grey divorce property settlements
One of the biggest challenges for people over 50 is having unrealistic expectations about how the property settlement process works. It’s important to recognise that property settlement isn’t based on a simple formula. The process is discretionary, meaning that the court applies legal principles to each individual case, and the outcome may not always feel predictable or “fair” based on personal views.
Mediation is often the most effective way to resolve property settlement disputes. It can be more amicable, cost-effective, and faster than going to court. Understanding the different steps and getting the right advice early can prevent costly and drawn-out disputes.
Lander Solicitors Queensland is here to help
Lander Solicitors Queensland is here to guide you through every step of the process, from understanding the division of assets to negotiating a fair property settlement. We have the experience and expertise to ensure that your settlement is equitable and meets your needs. Contact us today to schedule a consultation and let us help you protect your future.
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.
