Written by Adrian Seager
Ward Goodman
May 14, 2025
Life, as we all know, doesn’t always stick to the script. Sometimes, later in life, things can take a significant turn, and one of the trickier paths to navigate is divorce after you’ve passed 50. It’s becoming more common, this “grey divorce” as some call it, and it brings with it a unique set of financial puzzles that really need some careful thought and, let’s be honest, probably some expert help.
Here at Ward Goodman, we get that this isn’t just about numbers; it’s a big life change with plenty of emotions involved. Our aim is to offer some clarity and support, helping you get your head around the key financial bits and pieces as you step into this new phase.
The Paradox of “Grey Divorce”: Why It’s Rising While Overall Divorce Rates Fall
It’s a bit of a head-scratcher, isn’t it? You hear about overall divorce rates in the UK actually going down, which might make you think marriage breakups are becoming less common. But then you look at folks over 50 – what they call “grey divorce” or “silver splitting” – and the picture is quite different. It’s definitely on the up. This makes you wonder what’s going on, why later life is seeing more couples parting ways even as things seem to be stabilising for other age groups.
To give you an idea of the numbers, back in 2022, the total number of divorces in England and Wales hit a real low – the lowest since way back in 1971, at around 80,000. That’s a pretty big drop from the year before. Yet, if you zoom in on the over-50s, the trend is the opposite. Since the 1990s, the rate of divorce in this age group has actually doubled! And in 2021, around one in four divorces involved someone over 50. It really highlights how different the experience of relationships can be depending on where you are in life.
So, what’s the story behind this? Why are more people deciding to go their separate ways after 50? Well, there are a few things that seem to be playing a part:
- Living Longer, Wanting More from Life: Let’s face it, people are living much longer and healthier these days. If you’re in your 50s or 60s, you could still have a good few decades ahead of you. The idea of staying in a marriage that isn’t making you happy for all that time just doesn’t sit right with a lot of people anymore. As the research pointed out, retirement isn’t the full stop it used to be; it’s a new chapter, and some people want to make the most of it.
- More Women Standing on Their Own Two Feet: It’s great to see that more women, especially in later generations, have their own financial security. This independence can be a real game-changer. It means that staying in an unhappy marriage because you feel you have to financially is less of a barrier than it might have been for previous generations.
- Times Are Changing: Society’s views on divorce have shifted a lot. It’s not the taboo it once was, and that can make it easier for older people to consider it as an option without feeling the weight of judgment.
- Kids Grown Up and Gone: The “empty nest” thing is real. Once the kids have flown the coop, some couples might find that the main thing holding them together was raising their family. When that focus goes, they might realise they’ve grown apart or want different things for their future.
- Looking for What Makes You Tick: Later life can be a time for some serious soul-searching. People might have a renewed sense of wanting to pursue their own interests and find personal fulfillment, and sometimes that means a change in their relationship.
- A Less Stressful Way to Part Ways: The introduction of “no-fault” divorce in 2022 might also be playing a role. It can make the whole process less confrontational, which might be a relief for older couples who just want a clean break without the drama of assigning blame.
Ultimately, this rise in “grey divorce” seems to be down to a mix of us living longer, having more freedom and different expectations for our later years, and a shift in how we view relationships and personal happiness. It’s a reminder that life and relationships are always evolving.
Splitting What You’ve Built Together: Property and Pensions
When you’ve been together for a while, you tend to accumulate some pretty significant assets, and for most couples, the big ones are property and pensions. How these get divided when you divorce can really shape your financial future, so it’s important to get it right.
The Family Home: That place you’ve built memories in often holds a lot of emotional weight, not to mention financial value. When a couple parts ways, you’ve got to figure out what happens to it. Maybe one person buys the other out? Perhaps you sell up and split the proceeds? Or sometimes, you might even delay selling, especially if there are still kids at home.
Getting a proper handle on what the property is actually worth is the first step – a professional valuation is usually a good idea. And if someone wants to stay put, they’ll need to sort out things like mortgages or maybe even look into options like equity release (we’ll touch on that in a bit).
Pensions: Planning for Your Future: Pensions, built up over years of work, are a crucial part of your retirement plans. And yes, they’re also part of the pot when you divorce. The courts have a few ways they can deal with pensions, including:
- Pension Sharing Order: This basically splits the pension pot right there and then, creating separate pensions for both of you.
- Pension Attachment Order (Earmarking): This used to be more common, where a chunk of the pension would be paid to the ex-spouse when it started being drawn. You don’t see this as much now.
- Offsetting: Here, the value of the pension is balanced against other assets, like the house.
Given that pensions can be a bit of a minefield in terms of rules and regulations, and they have such a big impact on your later years, getting some solid financial advice here is really key to making sure things are fair for everyone. The newsletters from Ward Goodman consistently highlight the importance of understanding financial regulations and planning for the future, which absolutely applies here when navigating pension division during divorce.
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Tax Considerations When Selling Assets in Divorce
When a couple separates, selling jointly held assets such as property, shares, or investment portfolios is often part of the process. However, it’s important to understand that these transactions can trigger Capital Gains Tax (CGT) or other tax liabilities, depending on the timing and nature of the assets involved.
For example, if investments are sold as part of a divorce settlement after the end of the tax year in which the couple permanently separated, CGT may apply to any gains above the annual allowance. With the CGT exemption now reduced to £3,000 per individual for the 2025/26 tax year, careful planning is more important than ever.
This is where Ward Goodman offers a real advantage. As financial planning and tax specialists, our team can help you understand the full tax implications of your divorce, including:
- Whether asset disposals will attract CGT
- How best to time or structure sales to minimise your tax bill
- Strategies such as spousal transfers before separation deadlines, or using losses to offset gains
These are complex decisions with long-term financial consequences. By working with our advisers, you can avoid costly mistakes and protect more of your wealth as you plan your next chapter.
Looking at Your Options: Buying Someone Out and Equity Release
As we mentioned, if one of you wants to keep the family home, they might need to “buy out” the other person’s share. This could involve dipping into savings or taking out a new mortgage.
For those over 55, equity release might also be something to consider. It’s a way to get some of the cash tied up in your property without actually having to sell it. You could get a lump sum or even regular income, secured against your home. But, and it’s a big but, you really need to understand the long-term implications of this, like how it might affect what you can leave to others and the potential for interest to build up. Getting independent financial advice is absolutely crucial to figure out if this is the right path for you.
Why Getting Good Advice Matters, Especially Now
Navigating divorce finances at any age is tough, but it’s particularly crucial after 50, with retirement on the horizon. Getting advice from Ward Goodman can really help by:
- Clarifying your financial situation.
- Showing how settlements can impact your future.
- Guiding you through pension sharing.
- Assessing your property options.
- Creating a plan personalised to your next chapter.
Divorce is emotionally draining enough without financial worries. Getting professional help gives you a clearer view of your future, boosting your confidence. Don’t feel you have to go it alone – contact the Ward Goodman team today and let’s get your financial future on track.
