A “grey divorce” is an unofficial but common term used to describe the rise of divorces within an older age group in the last few years. What this means is that divorce proceedings are focused more on wealth issues than parenting or spousal support.
The reason for this is that older couples are generally at their peak earning capacity around age 50 and most, if not all, of their children are already grown.
When married couples decide to divorce at this age, their focus in generally set on a reasonable division of their savings and accumulated wealth. In particular, dividing registered retirement savings plans and company pension plans can be difficult.
The Canadian government understands that it can be unfair for someone to start rebuilding his or her retirement funds with only a few more years left until retirement. Specific laws are in place regarding these specific types of assets to protect individuals and reduce any undue financial hardships.
However, these laws can be complex. This is why it’s best advised to consult with an experienced legal professional. He or she can breakdown the complexities of high-asset divisions and help you protect your legal rights and financial interests.
Another issue that older individuals consider is any impact dividing their assets may have on their children. For example, if parents own their home, and wish to share the value of the home between their children and grandchildren, would selling the family home or downsizing be the best decision to make?
Older couples may also have to rethink their finances as they enter retirement. They will not have the full retirement value they originally envisioned, so a legal professional can help identify what solution make sense for a settlement, and what legal options you have at your disposal to protect your interests.