The Rise of "Grey Divorce" in Australia
In recent years, Australia has seen a notable rise in what is commonly referred to as "grey divorce"— the separation of couples over the age of 50. These divorces typically occur after decades of marriage and will often take place once the couples’ children have grown and moved out.
The Statistics Behind the Trend
According to data from the Australian Bureau of Statistics (ABS), the rate of divorce for Australians over 50 has steadily increased over the past 30 years, even as overall divorce rates have declined. In 1990, only 13% of divorces involved individuals aged 50 or older. By 2020, that number had risen to 27%.
Why is Grey Divorce Increasing?
There are several factors contributing to the rise of grey divorce in Australia:
1. Longer Life Expectancy
Australians are living longer than ever before. In previous generations, marriages that lasted 30 or 40 years often ended with the death of one spouse. Today, with life expectancy rising, many people in their 50s and 60s find themselves facing two or three more decades of life, leading them to re-evaluate whether they want to spend those years in an unsatisfying marriage.
2. Changing Social Attitudes
Societal views on divorce have evolved and older Australians are increasingly open to the idea of starting over. In addition, there’s a growing belief that personal happiness and fulfillment are just as important as staying together for the sake of longevity.
3. Empty Nest Syndrome
Many grey divorces occur after children have grown up and left home.Without the common goal of raising children, couples can find they have drifted apart over the years and are no longer compatible, leading one or both of the parties to re-evaluate their relationship.
Alternatively, some couples make an active agreement to stay together until after the children leave home.Recent media commentary looked at the concept of staying together purely for the sake of the children and the notion of a “divorce pact”, i.e couples making a mutual agreement to stay together until a certain point in the future, and then separate.
4. Financial Independence
The economic freedom that comes from having their own career, superannuation and investments provides both men and women with more options to pursue divorce later in life.
5. Second Marriages
Another factor is the higher rate of second and third marriages among older Australians. These marriages tend to have higher divorce rates, which contributes to the overall increase in divorce at a later age.
The Impact of Grey Divorce
While grey divorce offers the possibility of a fresh start, it also comes with challenges, particularly financial ones.
Dividing assets following a separation typically becomes more complex the longer a couple has stayed together, with larger overall asset pools to be redistributed as well as the proceeds of superannuation investments. Splitting the assets can leave both partners with less financial security than anticipated and it can significantly reduce the potential retirement income from superannuation.
In some instances, older Australians may also have health care concerns or be living with conditions that require ongoing care which can complicate the separation process and even impact on the way the asset pool is divided.
Parties may need to reassess their retirement plans, sell their homes, downsize or rent, or return to the workforce to re-establish their financial stability after a divorce. They may find it difficult to obtain mortgages due to their changed financial capacity and age.
Navigating the division of the asset pool can be a complex exercise which will likely have a significant future impact on each party.
Moving Forward
The manner by which parties conduct themselves during this process can have a significant impact on the community around them. It can be important for a separating couple to be collaborative rather than combative when engaging in the process of financial division. At the end of the day, they may seek the common goal of being able to celebrate their children or grandchildren’s life events together. It can also be important to find legal representatives who will work with the parties to not further antagonise an already difficult process.
When re-partnering, parties generally bring in assets from their former marriages, which they may want to preserve for the children of the former marriage or other beneficiaries. Making a new will or having a pre-nuptial agreement (binding financial agreement prior to marriage) with the new partner may be able to address these issues
For older Australians contemplating divorce it’s important to seek professional advice - both legal and financial – to ensure that you understand the implications of separation and how it will affect your financial future.
If you would like to speak to an experienced family lawyer about your situation, contact the CDQ family law team on 02 8556 0130 today for confidential advice.
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