Grey divorce – what a confronting little phrase. Yet, for many couples in their 50s, 60s or beyond, separating later in life is a real and growing scenario. After years or decades building a life together – raising kids, buying that family home, investing, sweating through retirements and renovations – it’s no wonder that dividing the “nest egg” in the wake of a split can feel overwhelming.
But while a grey divorce might feel daunting, understanding a few basics about how property settlement works in Australia can make things a lot less stressful.
Why dividing assets in later life is trickier
For those parting ways closer to retirement, there’s usually a lot more at stake. You’ve spent years growing your wealth, you might already be retired (or nearly there), and there’s no long runway left to “rebuild” financially. Unlike younger couples, there’s little opportunity to reset, replenish or recover after a lopsided settlement.
Superannuation, the family home, cherished heirlooms, and even future inheritances can all be part of the mix. It’s why the choices you make now will directly impact your life -and maybe your kids’ and grandkids’ futures – for many years.
How does division work?
In Australia, property settlement after separation is guided by the Family Law Act 1975. Legal talk aside, this means the courts (or a mediated settlement, if you can work things out) will look at:
All assets and property -regardless of whose name they’re in.
Liabilities and debts – mortgages, loans, credit cards.
Investments, businesses, trusts, superannuation and even stuff like valuable jewellery, art or antique cars.
Take stock: Make a thorough list of what you and your former partner own and owe. In long marriages, almost everything in the “pot” is considered joint, even if it’s technically in one person’s name.
Valuing the “asset pool”
Next comes value. That means updated statements, formal or suggested valuations (especially for houses or investments), and transparency from both parties. Even overseas assets and sentimental collectables should be put on the table.
It’s not just about being fair to your ex – it’s essential for your own security as retirement approaches. Misjudging the value (or not disclosing something) now could jeopardise your lifestyle later.
Superannuation: A common surprise
Here’s a biggie – superannuation can be divided in divorce. Many are surprised to learn their hard-earned super could be split by agreement or court order. You might not get your chunk straight away (since access usually depends on preservation age or retirement), but the outcome can make or break your retirement plans.
And because super is often a major or even the main asset at this stage, it’s worth seeking financial advice to understand the long-term income impacts and any relevant tax implications.
Considering your needs: now and tomorrow
The court isn’t just tallying dollars; future needs get a look-in too. Sure, for younger couples, factors like work potential or retraining matter. But for over-60s, issues like health, ongoing living costs, and access to future income streams take centre stage.
Things like future medical costs, maintaining the family home, or ongoing care responsibilities for grandkids are all weighed up. Be realistic about your lifestyle, your likely income, and your needs for the decades ahead – you might only get one shot to “get this right’’.
Financial vs Non-Financial contributions
Not everything comes down to dollars and cents. The court recognises non-financial contributions – raising children, managing the household, supporting a partner’s business, even caring for relatives. If one partner spent a career as the homemaker or primary carer, that’s absolutely considered in the split.
Long marriages especially tend to “even out” these contributions in the eyes of the law, but each situation is judged individually.
Don’t forget about the kids (and grandkids)
Your children might be adults now, but property settlement can still affect inheritances or long-term family assets like businesses, farms, or heirlooms. Divorce is the right time to check and possibly update estate plans, wills, and powers of attorney to reflect your new wishes – and to safeguard the next generation’s interests.
What’s next? Seek advice
Untangling a lifetime’s worth of shared assets isn’t easy. There can be a lot of emotion, a lot of memories, and – let’s be honest – a whole lot of paperwork. Decisions made now can’t easily be unwound later.
That’s why it’s so important to seek experienced professional advice -talk to a reputable family lawyer (like Hickman Family Lawyers, Perth), and speak to a financial advisor who “gets” grey divorce. They can help ensure that your settlement is both fair and sustainable, for today and for the long haul.
Divorce is never easy, especially later in life. But taking smart, proactive steps can help you head into your next chapter with more security—and a little more peace of mind.
(Story adapted and referenced from insights shared by Hickman Family Lawyers, Perth)
Proudly Australian owned and operated