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Divorces after the age of 50 are commonly known as the ”Grey Divorce”. These are divorces that occur later in life, often involving a large number of important assets such as retirement savings and multiple property divisions. A divorce is stressful at any age, but for couples 50 and up, the Grey Divorce is coming at a time when couples are looking at their retirement plans. Empty nesters have spent time accumulating assets for their golden years.
If you are considering a Grey Divorce, there are a wide range of considerations. In particular, the financial implications and how to live as an individual as opposed to as a couple are the most far-reaching and will have the most impact on the lives of the two spouses after the divorce.
Under Ontario’s Family Law Act, married couples are tasked with dividing all net wealth acquired during the marriage through the equalization of net family property. The assets themselves do not have to be divided; however, the monetary values are shared. Therefore, even if the marriage had a clear main income earner when a couple separates in Grey Divorce, all assets accumulated over the course of the marriage are considered matrimonial assets and are to be divided based on value. This usually means one party may have to pay an equalization payment to the other party.
Approaching a Grey Divorce requires a blend of emotional readiness and strategic planning. It is essential to seek legal and financial advice early to understand the implications of divorce on assets, retirement, and taxes. Open communication, where feasible, can facilitate a much more amicable process.
Litigation often exacerbates Grey Divorce woes.
Mediation can ease the transition considerably; negotiate win-win resolutions, reduce costs and emotional turmoil. Reaching amicable agreements through mediation provides a gentler path into the next phase of life. The mediated approach can ease much of the common turmoil couples face when dissolving a late-life marriage.
At Heft Law, our experienced professionals have helped couples mediate win-win resolutions. Contact us now for a no-fee consultation. https://heftlaw.ca/consultation-request/
