The financial challenge for ageing divorcees
The average age for divorce has reached an all-time high.
The average age on divorce is now nearly 46 for men and 43½ for women. This makes agreeing the financial settlement more challenging, because the higher the age, the more wealth there generally is to argue over. Some of that will often stem from rising property values, but another major (and sometimes forgotten) aspect is pension rights.
By their mid-40s, each party may have accumulated over 20 years the equivalent of hundreds of thousands of pounds’ worth of pension benefits, possibly including some from final salary schemes.
Dealing with pensions on divorce is a complex area that will inevitably require financial as well as legal advice. If you find yourself facing a divorce, do talk to us as soon as possible so that we can explain the tax and retirement ramifications that flow from the various pension settlement options.
The Financial Conduct Authority does not regulate tax or divorce advice. Occupational pension schemes are regulated by The Pensions Regulator.
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.