Understanding Grey Divorce
Grey divorce, a term used to refer to divorces among individuals over 50, has been on the rise in Ontario and across Canada.[1] As life expectancy increases and societal norms evolve, more and more older adults are choosing to end long-term marriages. While any divorce can be complex, grey divorce comes with unique financial, legal, and emotional considerations, often requiring a different approach than divorces involving younger couples. In this article I will go over some of the unique considerations of grey divorce cases, and will provide some practical tips and advice on the subject.
Financial Considerations
Division of Assets and Pensions
Likely to be the most contentious issue in a grey divorce is the equalization of property, particularly pensions. Under Ontario’s Family Law Act, pensions are considered family property and subject to equalization. The pension administrator plays a key role in providing accurate valuations and guiding spouses through this process.
Given that many individuals going through grey divorce are either retired or approaching retirement, dividing these assets can have long-term consequences on financial stability. Spouses may choose to offset pension division by negotiating other assets, such as real estate or investments, instead of splitting the pension itself.
Spousal Support
Spousal support is another key concern in grey divorce cases. In long-term marriages, the lower-earning spouse may be entitled to support, often on an indefinite basis. The Spousal Support Advisory Guidelines (SSAG) provide a framework for determining the amount and duration of support, considering factors such as the recipient’s age, health, financial need, and contributions to the marriage.
In grey divorce, support obligations may extend well into retirement, past the point when the payor spouse is capable of working to earn an income. Courts may consider the paying spouse’s reduced income post-retirement, but recipients who have been financially dependent for decades may still be entitled to some ongoing support.
Housing and Downsizing
Many couples in grey divorce own property together, often mortgage-free, which can make the decision to sell or retain the home difficult. These are often peoples intended “forever homes” which now need to be divided. One spouse may wish to stay in the home but maintaining it alone can be financially challenging.
Downsizing, moving to a condo, or transitioning to a retirement community may be necessary. This decision is not purely financial but also deeply emotional, as the family home often represents decades of shared memories.
Legal Considerations
Estate Planning and Wills
If you are getting a divorce, you absolutely need to review and update your estate plans. In Ontario, divorce revokes provisions in a will that benefit a former spouse, but separated (not legally divorced) spouses remain beneficiaries unless the will is updated. This can lead to unintended consequences, such as an ex-spouse inheriting assets.
It’s crucial to update wills, powers of attorney, and beneficiary designations on life insurance policies and retirement accounts post-divorce to ensure assets are distributed according to one’s wishes.
Health Care and Decision-Making Authority
Another important legal consideration in grey divorce is who will make medical and financial decisions in the event of incapacity. Many spouses name each other in powers of attorney for property and personal care. Post-divorce, individuals may wish to update these documents to appoint a trusted family member or friend instead.
Emotional and Social Considerations
Impact on Adult Children
Unlike other divorces involving young children, grey divorce often involves adult children. This simplifies the legal process in many ways, as determinations as to parenting time, decision making, and child support are moot. However, that does not mean that the process is straightforward. Adult children can still feel caught in the middle, experience grief over the family breakdown, or worry about how their inheritance and family dynamics will change.
While many aspects of divorce are simplified, family relationships can still be affected. Open and honest communication are essential to ensuring continued strong family bonds.
Loneliness and Social Adjustments
Divorce later in life can bring newfound freedom, but it can also lead to isolation. Social circles often revolve around married life, and friendships may shift post-divorce. Finding new social support, whether through community groups, hobbies, or even dating, is an important part of adjusting to post-divorce life.
Personal Growth and Reinvention
While grey divorce can be challenging, it also presents opportunities for personal growth and reinvention. Many individuals find new hobbies, explore travel, or even embark on new careers or volunteer work. Rebuilding confidence and establishing independence are key aspects of moving forward.
Conclusion
Grey divorce is a growing phenomenon in Ontario, bringing unique financial, legal, and emotional challenges. Careful planning, professional guidance, and a proactive approach can help individuals navigate this transition while securing their future. Whether dealing with pension division, spousal support, estate planning, or emotional well-being, a well-informed approach can make all the difference in successfully moving forward after a long-term marriage ends.
If you need assistance with your separation, no matter your age, contact Progressive Legal Solutions for a consultation today. An experience family law lawyer can greatly assist, saving headaches down the line.
[1] https://www150.statcan.gc.ca/n1/daily-quotidien/220309/dq220309a-eng.htm
Written by Caidan Ubell