There is an increase in divorce among older couples.
These are the “baby boomers” who expect to live life to the full. The children are grown and have left home some years ago.
Many find themselves thinking they do not want to stay in a difficult or loveless marriage, when the prospect of retirement and spending time with each other is not such an attractive option.
That said, it is not a particularly good time to contemplate divorce. There will be lots of family considerations, children or step-children all of whom will be concerned and no doubt unhappy about the prospect of a divorce and what will happen to the money, perhaps at a time when they may be hoping to have some help with housing.
Financial issues and worries loom large, particularly where one party is financially vulnerable if they have never worked.
Advisers should encourage clients to get legal advice as soon as possible so the solicitor can obtain undertakings from the other party not to dissipate assetsHopefully there will be a lifetime’s worth of savings and pensions but that is not always the case and sometimes it will be challenging to make ends meet in retirement let alone with the prospect of funding separate homes and lives.
Whether family lawyers or financial advisers, we need to think carefully about the issues that are relevant when people are divorcing either after or when they are at a stage of life contemplating retirement.
Highlighting the issue
A recent High Court family case has brought into focus the risks of one spouse going on a spending spree when there is a divorce or separation.
In that particular case the judge took the view that money spent by the husband should not be “added back” into the matrimonial “pot” and divided (in order to achieve an equal division of the assets prior to him dissipating assets).
The judge said the wife would have known the husband tended to spend and that was part of his flawed character.
While this case might make it more difficult to argue for an “add back” if there is reckless spending it is not impossible. The point being is that one does need to keep a careful eye to protect the matrimonial assets.
Advisers should encourage their clients to get legal advice as soon as possible so the solicitor can obtain undertakings from the other party not to dissipate assets or to possibly get an injunction to freeze assets if there is real risk and you have evidence of imminent expenditure by the spouse that will be of significant detriment to your client.
