As the recession shrinks pensions, divorce over sixty can lead to financial heartache says Law Society
Released on:
18/11/2009
As divorce rates continue to soar among the over-sixties, the Law Society warns that pension funds may be hit hard by reduced assets, leaving people with not enough money for retirement.
A marked increase in so-called ‘Saga divorces’ over the past ten years has led the Law Society to stress the financial implications of separation for those approaching retirement, and to urge those seeking divorce to get professional legal advice before proceeding.
With falling property prices and reduced assets following the credit crunch, pension funds could be hit. Confounding the problem is that older people have fewer opportunities to build up capital again after a divorce.
The advice comes as part of the Law Society’s nationwide information campaign advising consumers to go to a solicitor for much needed legal advice, The campaign takes a Beatles theme with the strap-line ‘Help, I need somebody’. It is currently featuring in the print media and on posters in more than 200 stations.
Fair settlement
Law Society President, Robert Heslett says:
“Divorce at any stage of life is undoubtedly a stressful experience, but for the over 60s, bigger estates, complicated pension funds and less working years to build up assets again will exacerbate this stress.”
“A solicitor is the only professional who has the qualifications and foresight to work towards a fair settlement in complex divorce cases. It is especially important for those who have little experience of the financial side of their lives to seek reliable advice on getting what they need.”
Those considering divorce in later life must also factor in the possibility one or both parties may need specialised health care in the future and make the appropriate provisions for this.
In addition, as many women from previous generations were more likely to leave financial planning to their husband, financial decisions made during a divorce can be very overwhelming for many women in their 60s.
A solicitor will talk you through a variety of options that may not necessarily lead to court proceedings such as mediation or collaborative family law, designed to help to people resolve issues following family breakdown in a calm and constructive manner, away from court. Although the Law Society stresses this option may not be suitable for everyone, particularly when there are issues surrounding financial disclosure and division of assets.
Using a solicitor to help wade through the minefield of divorce can help save a lot of heartache for you and your family. A specialist family law solicitor will ensure that the correct documentation is in place and that no important issues have been overlooked.
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