60+ divorce causes financial ruin
The number of people who are getting divorced during their retirement years is on the increase. Known as the “silver separators”, adults over the age of 60 are choosing to separate for various reasons, but could this mean that they will face financial hardship in their old age?
More older people are getting divorced
The statistics garnered from a survey produced by the International Longevity Centre suggest that the number of Silver Separators is increasing. From 1990-2012, the amount of people divorcing over the age of 60 has increased by 85%. If the numbers continue to rise in the same fashion, by 2037 nearly 10% of people going through divorce will be over the age of 60.
Divorce in later life can be lonely
One of the major concerns of the Silver Separators trend is loneliness. Many people are of the opinion that if you leave your partner in later life, you will struggle to find companionship again. In past times, this may have been true, however, nowadays there are many local community groups pioneered by many diverse charities. With some research, you can find some great information on friendship centres, and special interest groups to help Silver Separators stay in touch with people of similar ages and interests. The Internet has been a fantastic driver in this too. With the number of Silver Surfers on the rise, there are many age specific friendship and dating websites, which can help older divorcees that are shyer about returning to the dating/social scene.
Older age divorce can affect health and pensions
Other issues such as healthcare and financial security are also worrying. One of the upsides to divorcing later in life is that there is no need to worry about child arrangements. Although this can make the process easier, dividing up assets can be quite a troublesome task, especially if the marriage has been very long lasting. With property as the major nest egg and financial security blanket for divorcees’ respective heirs, it is understandable that neither will want to let this go. Another issue which intertwines with this is pension sharing. With many of this generation having solid Final Salary Pension schemes, a married couple’s retirement can be viewed as fairly financially secure. This changes, however ,when you look at the work demographics, where we see that many female pensioners are actually relying on the male partners pension income to offset what they didn’t earn.
Depending on how amicable the divorce is, there are a few ways to approach this with what is known as ‘pension sharing orders’ or ‘offsetting’. A pension sharing order is only applicable to private pensions, and involves transferring a percentage of one pension to the other party’s private pension plan, which they can draw on independently. This can work if assets are being equally divided and both parties want a clean 50/50 split.
Alternatively, a programme of ‘offsetting’ can be followed, whereby if one partner’s pension income is considerably higher, they can forfeit certain asset rights in order to create a fairer equity split. For example; only taking 25% of a house sale instead of 50%.
Both of these are very amicable ways of ensuring a fair divorce in later life. However, as we all know things are not always so simple. It is therefore vitally important that a solicitor is consulted at regular intervals to both guide couples through the divorce process, and also legally ratify all decisions made
With this new trend of divorcing later in life becoming more common, it is imperative that charities and other help groups offer support and advice to 60+ adults when it comes to finances and healthcare. Having a financial agreement in place can also help to ensure financial security in the event of a marriage collapsing.
David Kirkman, a family law and mediation solicitor, said;
“At Jordans we often deal with divorces of people over 60. All divorces are unhappy, but divorces between older couples who have been married for a long time can be particularly sad and painful. Working out how to deal with your assets and future income only makes it harder. Older couples can face more difficulties than younger couples because they can find it harder to increase income by returning to work and it is more difficult to take out a mortgage. If you are separating, it is extremely important that you think about your future financial security, particularly your income needs, and seek legal advice and assistance.”
The rise in the amount of Silver Separators doesn’t have to be seen as a negative thing. Being able to leave a loveless marriage by the means of a divorce doesn’t hold the negative social connotation it used to have, which has to be thought of as a positive thing. It is just important to manage your future accordingly.
