Divorce after 50 can feel especially challenging as it is rarely just the end of a marriage: it is often the unravelling of a long, shared adult life. By this stage of life the couple’s identities are often deeply entwined, with social circles, family roles and plans for retirement often built around the marital partnership. There may be teenage or grown children to consider, elderly parents in the mix. Women may be facing menopause alongside divorce. The prospect of starting afresh at this age can be especially daunting.
Divorce among the over 50s has become increasingly prevalent. This is likely due to a combination of factors including increased life expectancy and changing attitudes (and the decline in marriage among younger age groups).
From new living arrangements and family dynamics to inevitable concerns over financial security involving property, pensions and retirement planning, those divorcing after 50 often find themselves grappling with challenges that they never expected. The timing can be particularly unsettling: just as thoughts should be turning to winding down, previously settled plans for later life are suddenly upended, potentially requiring significant financial recalibration alongside reimagining what retirement itself may now look like. Legal and financial advice, alongside appropriate emotional support such as from a divorce coach or therapist, will be essential in taking a holistic approach, ensuring that the divorce does not unnecessarily or fundamentally undermine years of careful financial planning.
Those divorcing after 50 are more likely to have accumulated significant assets during the marriage, and to have made long-term financial decisions that are now irreversible, such as a wife compromising on her career, spending substantial sums on school fees or taking early retirement. Retirement planning that seemed ample when intended to provide for one household may suddenly seem inadequate now that it has to provide for two separate households.
Plans may need to be brought forward and adapted: it might have been envisaged that the family home would be sold once all the children had left home and there would be downsizing to help children get on the housing ladder. Instead, the family home may need to be sold immediately and all the equity used to purchase suitable homes for each spouse at a time when age is likely to limit mortgage capacity. Adjusting to this new financial reality can be difficult.
When considering the available assets, it will be essential not just to consider the appropriate split, but also how the available resources can be maximised and shared in a tax-efficient way. It is vital to recognise that good legal advice cannot operate in isolation. Sound financial advice should run alongside it from the outset, to ensure that all financial options and consequences are fully understood so that informed decisions can be made.
Financial advisors are increasingly familiar with working alongside family lawyers, and some even specialise in advising women following separation. Where a couple maintain trust and constructive communication, there can be a benefit to working with a single financial advisor, especially if they are familiar with the couple’s previous wealth planning and this can be woven into a constructive legal process, such as mediation or a 'one couple one lawyer' approach in suitable cases.
For those divorcing after 50, pensions can be among the most significant, and most overlooked, assets. Research for the Money & Pensions Service found that only 43% of UK adults are aware that a former partner’s pension can often form part of their divorce settlement. It is therefore crucial to understand that, on divorce, pension funds can be transferred from one spouse to the other, or that their value can be considered in other ways, including offsetting the value of the pension against other assets.
Valuing a pension can be complex and may require expert advice from a Pensions on Divorce Expert to ensure that all aspects of the pension are factored in. Whether pensions should be treated as capital or income can have a significant impact on how they are valued and shared, and this can be particularly contentious for couples in their 50s for whom retirement is not imminent, but is in sight. If a pension is already in payment then specialist advice may be needed to understand the consequences of sharing it, particularly if there is a significant age gap between the spouses. Where there are several different pensions, which is shared could make a difference to the overall income available on retirement, so again specialist advice is needed.
Whichever approach is taken, pensions should never be overlooked. In the midst of disruption and change, staying in the family home can understandably feel like the immediate priority. Yet pensions can be crucial for long-term financial stability, providing a foundation that can sustain retirement and support future independence.
Income arrangements will also need to be addressed. A wife who has not worked, or has worked part time for many years, may be surprised to learn that judges in the Family Court will often now expect them to maximise their earning capacity, even where it is limited in amount and duration. They will need to research what options are available to them, think about what they would like to do, and perhaps undertake some training or a new qualification. What might seem overwhelming at the outset may however turn out to be an empowering and confidence-boosting step towards independence.
Divorce after 50 can be especially daunting, with a lot to think about. It’s important not to rush, but to take the time to gather all the information you need, explore your options, and seek the right professional and personal support. While the process can be challenging, careful planning and guidance can help you build confidence and financial security to embrace the next chapter.
Advisory is Tatler’s trusted network of influential private client experts, all at the pinnacle of their profession. From Family Law to Property, our hub of elite practitioners have the gilt-edged expertise necessary to advise UHNW and HNW individuals. Find out more about Jo Carr-West here
