Helping divorcing couples find financial fairness in retirement
Later life divorce is on the rise and shows no signs of slowing down. In fact, one in four divorces occur after the age of 50. Pandemic lockdowns have had an undeniable impact upon the divorce rate too. In 2021, there were 113,505 divorces granted in England and Wales, a 9.6% increase compared with 2020.
Following the introduction of 'no-fault' divorce in England and Wales, 33,234 divorce applications were made from April–June 2022 — a record high.
Divorce can have a huge effect on a couple’s finances, especially as they approach retirement. It’s a critical time for advisers to support clients with good financial planning and sensitive advice to help them minimise financial risk and reach a fresh start.
We know divorce can be a tricky subject to tackle, so we’ve put together some helpful articles and useful resources to support your client conversations.
Advising and supporting clients going through divorce
The Financial Vulnerability Taskforce has launched a good practice guide to highlight the range of vulnerable circumstances arising from the impact of divorce.
Researchers at the Manchester Institute for Collaborative Research on Ageing and Manchester Sociology have created a video explaining the best approach to take to make sure any settlement is fair and just.
In the last four years, searches for ‘divorce’ have increased 12%
In 2021 there were 2 million+ searches relating to ‘divorce’. Only 2020 has seen higher searches for divorce, reaching 2.1 million.
On average, divorced women retire with £77,400 less than men
Divorced women tend to retire with just £26,100 - compared to £103,500 for men
Value of advice
While 61% of people aged 50+ consulted a solicitor during a divorce...
Only 3% sought financial advice, despite 32% of divorcees saying they would seek advice in the future