Must-Have Information About ‘Grey Divorces’ in Alberta

When you think of older couples and long-term marriages, you probably envision a lifestyle where they take trips together or just settle down and enjoy each other’s company.

Unfortunately, this picture is changing, and some married couples in Canada who are 55 and older are ending both long-term marriages and second marriages.

This new influx of couples parting ways in postretirement years has become known as “grey divorce.”

Different Visions of Postretirement Years

As medical technology continues to get better, Canada continues to experience a rise in life expectancy for both men and women.

This increase may lead some older couples to become more aware of the time they’ll need to spend with each other. If they start to re-evaluate their relationships and realize there’s not much time ahead of them, it could lead to a change in focus.

One of the partners may decide to end the relationship, especially if they’ve been unhappy in the marriage for a long time.

When young adult children move out to start their lives, one or both spouses may begin to realize they have different visions for retirement. Maybe they wish to follow their personal interests.

While making a break may seem straightforward, it can be more challenging when there are more assets.

Capital City Law is here to assist if you are considering a “grey divorce” and would like professional mediation or to understand your options better. Contact us today and seek the advice of an experienced divorce lawyer.

Examining Post-Divorce Financial Consequences for Grey Divorces

Individuals who are considering a divorce later in life should analyze their expected financial situation after their marriage has ended.

Collecting details associated with all of their personal financial information, such as pension statements, tax returns, insurance policies or real estate holdings, is essential. Liabilities related to mortgages, outstanding loans, lines of credit, commercial debts or personal credit cards should also be examined.

Pensions are income and are divisible. CCP credits are also divisible, though not under the Family Property Act, but rather the Canadian Pension Plan Act. If one partner is receiving a pension, it will need to be treated as either an income source for spousal support or an asset.

Call our law firm if you’d like to know more about how retirement income is split and the legal ramifications of a divorce in your later years.

Estate Planning and Insurance Arrangements Will Likely Need to Be Evaluated

Getting a grey divorce makes it critical to update insurance policies and remove a partner as a beneficiary.

Updating a Will after a significant change like this will also be necessary. It’s critical to re-examine any estate planning documents that have already been completed to make sure they express your wishes and exact intentions when a divorce occurs.

A higher number of assets accumulated, such as RRSPs, pensions, homes, property or savings, may increase the odds for challenges to occur during a divorce settlement.

Also, one of the partners may be dependent on the other spouse’s medical plan. In different situations, one partner may have stayed at home for a significant period, which can make it difficult to reenter the workforce.

After a divorce, the parties’ incomes need to support two separate households. This situation can make it financially devastating for one or both partners.

The legal ramifications associated with a divorce can be easier to understand when you contact an experienced family lawyer. Call us today or visit our Contact Us page to seek professional assistance.