Roger Mackenzie, family law expert and Partner at leading Scottish law firm Wright, Johnston & Mackenzie LLP (WJM), said: “Divorce among retired couples brings unique financial challenges, particularly regarding pensions. Unlike younger couples, retirees’ pensions are typically in payment rather than in the accumulation phase, which requires careful valuation and consideration.
“Getting financial advice becomes even more crucial for retired individuals navigating divorce. Only 12 per cent seeking advice, as shown in the L&G survey, is concerning. Planning ahead is vital, especially for pension income, to maintain a reasonable standard of living.
“Retirees must also consider health implications for themselves and their spouse during divorce proceedings. Understanding the implications of pension sharing versus long-term maintenance is essential for securing future financial stability.
“For retirees, it’s the income generated by pensions that holds greater importance. However, it’s often challenging for pension income post-divorce to sustain two households adequately, potentially leading to a perceived unfairness.
“While younger couples will need to prioritise property and mortgage options during divorce, retired couples may face limited options due to pension constraints, potentially leading to the sale of property to resolve financial matters.
“Pension inequality still exists, with husbands typically having greater pension provision. This, combined with the emotional challenges of late-life divorce, can contribute to a sense of unfairness, though it’s important to consider each spouse’s contributions, including years of homebuilding and childcare.
“Differing attitudes towards wealth accumulation and spending in retirement can exacerbate tensions during divorce. While one spouse may prioritise preserving wealth for future generations, the other may seek to enjoy their advancing years through leisure activities, leading to conflicts over financial priorities. Therefore, it’s important to seek legal advice so that individual circumstances can be considered.”
