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When you decide to get divorced, the process can be complicated. This may be particularly true if you decide to get a grey divorce later in life. In Canada, the average age for divorce has been steadily rising, partly because people are increasingly getting married at a later age. As individuals over 50 navigate the complexities of ending long-term marriages, they may face distinct financial hurdles, from dividing retirement savings to managing reduced incomes.
At Gelman & Associates, our family law lawyers are prepared to assist couples with their divorce, no matter what stage of life it occurs. We tailor our services to the individual needs of clients, with a focus on exceptional legal counsel and positive customer service. To schedule a consultation with our team, contact us today.
What is Grey Divorce?
Grey divorce is a term used to describe the rising trend of divorces among mature couples over the age of 50. Grey divorces often involve long-term marriages, where couples have spent decades together, raising children and building financial and emotional ties. Unlike younger couples, older adults may have less time to recover financially following a divorce.
Several factors have contributed to the rise in grey divorce, including evolving social norms and increased life expectancy. Many older adults find themselves reevaluating priorities as they approach or enter retirement. However, while separating later in life may be the right emotional decision, it often brings with it a unique set of financial challenges. This is because assets have often accumulated over decades of marriage that need to be divided, and retirement plans may be disrupted.
Financial Challenges During Grey Divorces
For older adults, divorce can unravel decades of financial planning. This may leave both parties in a precarious situation as they head into retirement or adjust their long-term financial goals. With less time to rebuild assets and a higher likelihood of relying on fixed incomes, older divorcees may face particular financial hardships. These may be associated with common areas of contention, such as:
Spousal Support
Spousal support can become a central financial issue during grey divorces. In many long-term marriages, one partner may have relied on the other for financial stability. This may be because they stayed home to raise children or earned significantly less over the years. In these cases, courts often order spousal support payments to help lower-earning spouses maintain a similar standard of living after divorce.
For senior adults, spousal support payments can significantly impact retirement plans. Paying spouses may need to adjust their retirement age or lifestyle to afford the payments. In addition, the receiving spouse may struggle to sustain themselves even after collecting spousal support. Given the fixed nature of retirement income, spousal support agreements can be difficult to modify later on, further complicating financial planning post-divorce.
Retirement Planning
Retirement planning can be one of the most significant financial concerns for couples undergoing grey divorce. After decades of saving for retirement together, dividing assets like RRSPs (Registered Retirement Savings Plans), TFSAs (Tax-Free Savings Accounts), and pensions can severely impact both spouses’ financial security.
Division of pensions in Ontario, including the potential distribution of Canada Pension Plan (CPP) benefits, can often result in a significant reduction of savings or delayed retirement for older couples. Navigating the rules regulating CPP or Old Age Security (OAS) benefits can be complex, so seeking advice from a legal professional is crucial.
Estate Planning
After years of building an estate together, couples choosing to divorce at a later age must reassess how their assets will be divided. This may be particularly complex, seeing as many older couples must not only split assets between themselves but also between their children and/or heirs. Grey divorce can present unique challenges in this respect, as the children involved are normally adults and may attempt to assist in resolution or negotiations.
Grey divorce often necessitates an overhaul of wills, trusts, and beneficiary designations. Reworking an estate plan post-divorce requires careful consideration of tax implications, inheritance strategies, and potential long-term care needs.
How Can a Lawyer Help With My Grey Divorce?
Navigating a grey divorce can be difficult due to long-term financial and personal ties built during the marriage. Consulting an experienced family lawyer is important for protecting your rights and ensuring a fair division of net family property. Like any other divorce, a lawyer can help you understand the intricacies of Ontario’s divorce laws, guide you through the negotiation process, and ensure that your financial future is safeguarded. They can facilitate mediation, arbitration, or take your matter to court depending on your goals.
An experienced family law lawyer can also assist with:
- Dividing net family property, including;
- Marital assets
- Real estate
- RRSPs, and other financial accounts
- Negotiating spousal support
- Negotiating child support (if applicable)
- Dividing pensions
- CPP credit splitting
- Revising estate plans and updating wills, trusts, or beneficiary designations
- And more
Hiring a lawyer during a grey divorce in Ontario helps ensure that your legal and financial interests remain protected. An experienced legal professional can guide you through each stage of the divorce process, providing clarity and peace of mind during your challenging life transition.
Are You Going Through a Grey Divorce? Contact Our Family Law Lawyers Today
Grey divorces present unique and complicated challenges to couples who undertake them. Because of the significant financial impact grey divorces can have, it is important to be aware of your legal rights and options. By working with an experienced family lawyer, you can feel confident that your future is in good hands.
At Gelman & Associates, our family law lawyers are available to help you every step of the way. With offices throughout Ontario, we are prepared to assist clients all over the province. Whether you are having trouble agreeing to the terms of your separation, or you require help with financial planning, we can support you in achieving your goals. To schedule a consultation with our divorce lawyers, contact us today.
Disclaimer: For specific legal advice on your family law matter, please consult with a family law lawyer. The content in this article is not intended to act as legal advice and is instead intended to act as a general overview of a legal topic.
