Member Article

How not to let a grey divorce wreck your retirement plans

All your life you’ve been dreaming of the moment when you can finally put up your feet and enjoy the fruits of your many years of labour to travel the world, take up an exciting hobbies and finally be able to relax…

Unfortunately, a rise in so-called grey divorces is scuppering the dream for many older couples, says Ann Corrigan, founder of Clarity Family Law, a specialist family law firm in Buckinghamshire.

Many older couples suddenly find themselves not only alone and without a partner to share the dream, but also having to seriously downscale their plans. Divorces among the over-60s continue to increase: in 2011 16,000 people aged 60-plus divorced, almost twice as many as 10 years earlier, according to statistics released by the Office for National Statistics last year.

Ann shares her top tips for preventing a grey divorce from wrecking your retirement plans:

Get financial advice straight away:

At this age many spouses bring fat pensions to the table, which have to go into the pot of assets to be shared. There are two main options for dealing with a pension during divorce. In most cases, the pension holder keeps the whole thing and the spouse takes other assets in lieu of a share of the fund. The main alternative is pension sharing, where the spouse is given a chunk of pension fund and either leaves it in the same scheme or transfers it to another one. A divorce lawyer will be able to ensure that you take the right decisions to ensure you’re interests are being looked after. He or she will also be able to advise what to do if there is a suspicion of ‘hidden’ assets and whether you need a financial advisor.

Don’t dip into pension to finance divorce:

Drawn-out legal battles are very expensive. Try to reach an agreement through mediation or other court alternatives such as collaborative law, which could reduce time and cost considerably. However, if going to court is unavoidable, try not to use your pension to fund the divorce. Rather cut back on non-essentials in your every day life. You’ll be able to enjoy life more afterwards. Take a longer term view.

Keep emotion out of it:

Often people are so upset by the divorce, they just want to walk away, insist on going after assets such as a house, even if they can’t afford it or sign away assets such as a pension too lightly. It’s in your own interest to stay calm. A good divorce lawyer will guide you through the process and ensure that your emotions don’t get in the way of negotiating the best outcome for you.

Take care of yourself:

Just because you now find yourself alone, doesn’t mean you can’t still do some of the things you wanted to do – or different things that you might not have been able to do with your ex. Immerse yourself in the community, volunteer your services or throw yourself into a new hobby – to help you rediscover yourself and your passion for life. Talk to friends about the divorce, and consider counseling to help you through the process, if you’re struggling.

Ann Corrigan is founder of Clarity Family Law Solicitors, a specialist family law firm in Buckinghamshire, and a trained mediator and collaborative lawyer.

This was posted in Bdaily's Members' News section by Clarity Family Law .