Silver splitters: divorce in later life

In recent years, divorce rates among individuals aged 65 and over in England and Wales have seen a notable increase.

This trend reflects broader societal changes, including shifting attitudes towards marriage and divorce, and the evolving dynamics of later-life relationships. Understanding the implications of divorce at this stage of life is crucial for those considering this significant decision.

Increasing divorce rates in later life

According to data from the Office for National Statistics (ONS), the number of divorces among older adults has been steadily increasing over the past three decades. While the overall divorce rate in England and Wales has seen fluctuations, the rate among those aged 65 and over has notably increased – doubling since 1993. Factors contributing to this trend include longer life expectancy, changing social norms, and the increasing acceptance of divorce as a viable option for unhappiness in later life.

Key considerations for older adults considering divorce

1. Retirement implications
   Financial security is often a primary concern for older adults contemplating divorce. The division of assets, including pensions, savings, and property, can significantly impact retirement plans. It is essential to seek financial advice to understand how divorce may affect income and living standards post-divorce.
2. Pension rights and assets
   Pensions can be one of the most substantial assets for older couples. Understanding how pensions will be shared is crucial, as this can either be done on a “capital basis” or an “income basis”. When approaching retirement age, it is usually more appropriate for pensions to be shared to ensure that each party’s income in retirement is equalised, rather than seeking to equalise the capital values of the pensions. In some cases, pensions can be “offset” against other matrimonial assets (such as the family home), but this requires careful guidance from a pension actuary.
3. Estate planning and inheritance
   Divorce necessitates a review of estate plans, including Wills and trusts. A divorce does not revoke a Will or change your Will back to its state prior to your marriage. If there is anything in your Will related to your ex-spouse (either as an Executor or as a beneficiary), then the Will shall be read as if they had passed away. Beneficiaries should therefore be updated to reflect new circumstances, as things can become complicated should you pass away without updating your Will to reflect your divorce.
4. Health insurance and care
   Divorce can affect health insurance coverage, particularly for those relying on a spouse’s policy. Older adults should explore options for maintaining health insurance, as well as consider potential long-term care needs and how they may be impacted by divorce.
5. Housing decisions
   Deciding whether to keep the family home or sell it can be emotionally and financially challenging. The implications of moving to a new residence or downsizing should be carefully considered, along with the emotional aspects of leaving a long-term home.
6. Emotional and social support
   The emotional toll of divorce can be significant, especially later in life. It is therefore vital to have a support system in place, whether through family, friends, or professional counselling, to navigate the emotional complexities of separation.

The Birketts view

Divorce in later life presents unique challenges and considerations that require careful thought and planning. As the trend continues to rise among those aged 65 and over in England and Wales, it is crucial for individuals to equip themselves with knowledge and seek professional guidance to help navigate the complexities of divorce. By addressing financial, emotional, and legal aspects, older adults can make informed decisions that support their well-being and future security.

If you would like to know more about the topics discussed in this article, please do not hesitate to contact Stefan Donnelly or another member of Birketts’ Family Team.