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Navigating the Financial Realities of Grey Divorce

Divorce at any age is tough, but later in life, it brings its own set of financial complexities. At Insight Wealth Planning, we’ve helped many clients through this journey, helping them rebuild their financial security and confidence. If you’re divorcing after 50, you’re not alone—and there is a way forward.

The Grey Divorce Trend

The divorce landscape is changing. While overall divorce rates have decreased since the 90s, divorces among those over 50 are actually increasing. Recent stats from Australian Seniors and the Australian Bureau of Statistics show that 32% of divorces now occur after 50, that’s a big shift in relationship patterns.

The Financial Reality of Starting Over

The Cost of Living Solo

The financial impact of going from a couple to single living is big:

  • A couple’s average monthly expenses: $4,118 ($2,059 per person)
  • Single person’s average monthly expenses: $2,835
  • The reality: Singles need about 70% of a couple’s income—not 50%

So, while your assets might be split 50-50, your living expenses won’t decrease proportionally, creating budget pressure.

Key Financial Considerations

Superannuation

Your superannuation is likely one of your biggest assets. Important things to know:

  • Super can be divided without immediate withdrawal
  • Splitting isn’t mandatory but should be considered in settlements
  • Division can impact retirement planning
  • Professional advice is key to getting the best outcome

Complex Asset Division

Several things can complicate financial settlements:

  • Investment Properties
  • Primary residences
  • Self-managed super funds (SMSFs)
  • Less liquid assets (business holdings, real estate, art)
  • Tax implications of asset sales
  • Centrelink entitlement changes

Your Financial Recovery Roadmap

1. Update Critical Documents

  • Review and update superannuation death benefit nominations
  • Update your Will
  • Review and adjust insurance

2. Rebuild Your Financial Foundation

  • Develop a plan to rebuild retirement savings
  • Look at re-contribution strategies to get the best tax outcome
  • Reassess your investment approach and risk tolerance
  • Create a new budget based on solo living costs

3. New Entitlements

  • Check Centrelink thresholds have changed
  • Review benefits you were never eligible for
  • Understand how your tax situation has changed

4. Housing Options

  • Do you keep or sell the family home
  • What’s sustainable debt for property purchases
  • Alternative housing options

Professional Help Makes a Difference

At Insight Wealth Planning we know that divorce after 50 is more than just dividing assets—it’s about building your financial future. Our experienced financial planners can help you:

  • Navigate superannuation splits
  • Build wealth
  • Create a sustainable retirement plan
  • Understand and get the best out of Centrelink
  • Make informed decisions about property and investments

Time is on Your Side

While starting over feels daunting, remember the power of compounding, which means taking action now rather than later, which can make a big difference to your financial recovery. The right financial plan today will secure your tomorrow.

Get Started

Don’t go it alone. Our team of financial planners have helped many clients rebuild their financial security after divorce. We’ll work with you to create a plan tailored to you.

Book a consultation today.

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