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How family lawyers should handle the ‘grey divorce’
A Brisbane family law specialist has spoken out about the issues around older couples divorcing – or, a “grey divorce” – and what solicitors should do to manage the process.
Naomi Neilson
Older couples often have significant financial assets which accrued over their marriage and poses a challenge for both the divorcing couple and financial advisers. Such cases warrant retirement plans for both spouses and concern superannuation splitting.
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Jennifer Hetherington of boutique firm Hetherington Family Law said the “grey divorce” trend can pose unique challenges, particularly around assets and superannuation.
“With grey divorces you have this unusual transition where a couple change in having a joint objective for their finances and assets to effectively two individuals carving up a lifetime’s accumulation of assets and make a fresh start,” Ms Hetherington said.
She said lawyers should work with a financial planner who understands all retirement strategies and ensures that a property division is structured so that it is at its most tax effective to maximise the cash flow for both parties.
Ms Hetherington added lawyers can use superannuation splitting laws to release funds and turn super into cash, which can be a really important step for divorcing couples in need of two homes instead of one and who are unable to afford a mortgage.
She added statistics show the single woman over 60 is the most disadvantaged in this country, placed down a list for housing behind families and older couples and generally treated poorly compared with couples. In the case of job hunting, older men fare better as they are perceived to have a longer work history than women.
“It’s not uncommon to find women for whom their husband always handled all finances and suddenly they are faced with trying to start over again or worse, deal with someone who tries to hide money or assets,” Ms Hetherington said.
“I still encounter many women who have no idea of the family finances as they left it all to their husbands, as they trusted him to do the right thing. There’s nothing wrong with that – when people are married a long time, they each take their own roles in the relationship – but we have to get information to know what the situation is.”
Ms Hetherington added it was important to remember women in their 60s are only two-thirds of the way through their lives and the money she receives from the divorce and in property settlement will need to last potentially another 25 years.
She said family lawyers should be agents for change of the mindset that women who are in these situations will be unable to adjust after a divorce.
“The process of divorce for older couples needs to have an additional layer to help in transitioning to post-marriage life. Older people may not be as ‘flexible’ or adaptable as younger people emerging from a marriage. We also have to look at retirement and make sure both husband and wife will be able to survive into their golden years.”
