FINP079 Financial considerations for grey divorce or late-life separation (638 words)

The effect on their finances is something both members of a couple separating in later life need to be aware of. This article will explain how assets are divided and how superannuation balances are affected, as well as the impact on estate planning and post-separation income.

When members of a long-established couple are contemplating divorce or permanent separation, there’s more than the emotional toll to take into account. Ensure you are aware of the potential financial consequences before making this life-changing decision.

Dividing assets

Couples in their fifties, sixties, or older are likely to have accumulated substantial assets that must now be divided between them. They may own their primary residence and perhaps a holiday home or investment property. There may be joint business interests and investments, including property held in a self-managed super fund, company, or discretionary trust. Both jointly and separately owned assets are included in the asset pool during a divorce settlement.