04 Apr Grey Divorce: Important Legal Implications to Consider

Posted at 16:09h in News & Insights by

“Grey divorce” refers to couples over the age of 50 who are in the process of separating and/or getting divorced. There are several important factors to consider when couples separate later in life.

Factors Contributing to Grey Divorce:

Couples decide to separate for a variety of reasons. Here are some common factors which may contribute to a person deciding to leave their spouse after a long-term relationship:

    1. Increased Life Expectancy: As lifespans are ever increasing, people may feel less inclined to stay in unhappy relationships, as they have more years ahead of them to live independently.

 

    1. Changing Attitudes Toward Marriage: Older generations may have held onto traditional beliefs – specifically – “until death do us part”, but factors such as increased individualism and changing gender roles, have led to greater acceptance of the concept of divorce, even later in life. The pandemic also played a significant role in people re-evaluating their priorities and relationships.

 

    1. Financial Independence: Many older adults, particularly women, are economically stable and are no longer financially dependent on their spouse which has decreased their concerns about the economic consequences of divorce.

 

    1. Empty Nest Syndrome:  In some cases, couples have only stayed together because of their children. Once the children grow up and move out, there is no reason for the unhappy couple to stay married. Other couples are forced to re-evaluate their relationships once their children have left home. Unfortunately, some of these couples find that they no longer have common interests or goals.

 

Grey Divorce: Legal Implications

Many couples have generated a significant amount of assets in preparation for their retirement. The thought of dividing these assets, after years of hard work and sacrifice, is an emotional and daunting task. Some clients receive significant inheritances from their parents that they wish to secure for their children. It is important for a client considering separation to obtain legal advice to understand the following implications:

 

    1. Division of Assets: Subject to certain exceptions, such as inheritance, assets acquired during a marriage or long-term relationship are considered “family property” and are generally divided equally between spouses, regardless of who earned it. These assets include pensions, RRSPs, savings, and property.

 

    1. Spousal Support: After a long-term relationship, one spouse may have a significant spousal support claim given their role during the relationship and the financial sacrifice which resulted from this role. Prior to awarding support, a court will consider several factors such as the length of the marriage, the financial needs of each spouse, and the ability to support themselves. Retirement is only one factor that the court will consider, but will not alone preclude an award of spousal support.

 

    1. Pension Division: Pensions accumulated during the marriage are considered family property and are often subject to division between spouses upon separation, regardless of which party contributed to the pension. As there are different types of pensions, and given a pension’s significant value at retirement age, it is imperative that a client seek legal advice whenever a pension is at issue.

 

    1. Healthcare and Insurance: Older divorcing couples must consider the implications for health insurance coverage, especially if one spouse is dependent on the other for coverage.

 

    1. Estate Planning: It is imperative for couples to obtain independent estate planning advice to ensure that their intentions are given effect upon their death. A separation may necessitate updating one’s will, representation agreement (formally referred to as power of attorney), and other estate planning documents to reflect new circumstances and beneficiaries.

 

The lawyers at YSM Family Law are aware of the unique legal and emotional considerations involved in grey divorce and will provide support and guidance throughout the separation process.