A divorce later in life, often called a grey divorce, is much different than a divorce between younger couples. Because children are often grown, the bulk of the negotiations are centered around dividing property and assets. The process can be complicated because retirement savings that were adequate to support one household now must support two.
The skilled high net-worth divorce lawyers at The Riley Divorce & Family Law Firm have extensive experience navigating divorces for couples later in life. Contact the tenacious team when divorce near retirement in Toronto is under consideration. They are available 24/7 to take your call and discuss your legal options.
If you are divorcing near or after retirement age, it is critical to be realistic. The Ontario Family Law Act s.5 provides that each of you must reap equal financial benefits from your marriage. If you are at or near retirement age, you are unlikely to recoup the wealth your spouse takes from the marriage, and you must approach property division negotiations with this in mind.
Money in pension plans, tax-advantaged retirement vehicles, Canada Pension Plan (CPP), and investment accounts established during the marriage are all part of your net family property. You must sometimes divide CPP credits, and the other assets are subject to equalization. Working with a skilled Toronto lawyer is essential to ensure that the division, especially when the divorce is near retirement, is handled in the most tax-efficient and equitable manner possible.
One benefit of divorcing later in life is that issues surrounding the marital home(s) are less likely to be a stumbling block. Couples often expect to downsize in these years, so selling the home and dividing the proceeds is often desirable for both parties. Liquidating residential properties can often generate the cash for an equalization payment, if necessary.
Couples nearing or at retirement age must consider spousal support. Spousal support is not obligatory in Ontario, but a court can order it when one spouse is unlikely to be self-supporting. In most cases, spousal support is temporary, but that is often not the case when the receiving spouse is older.
Spousal support can be indefinite when the marriage has endured 20 years or longer, especially when one spouse gives up career opportunities to be a primary caregiver and household manager. A judge also can award indefinite spousal support when the marriage lasts at least five years and the length of the marriage plus the receiving spouse’s age is at least 65.
The Spousal Support Advisory Guidelines can provide an estimate of potential spousal support obligations. However, couples benefit from negotiating a spousal support arrangement rather than leaving it to a court’s discretion. You and your spouse might work with a mediator to arrive at a fair resolution of spousal support. Alternatively, an experienced lawyer in Toronto could facilitate negotiations with your spouse’s lawyer to develop a divorce plan when it is close to retirement.
A late-in-life divorce requires a review and often a revision of your estate plan. If you have children with your soon-to-be-former spouse, you should try to coordinate your changes so that they do not lose an expected inheritance because of your divorce.
Your will may need to be redone, and you may need to name new beneficiaries on life insurance policies. Check your healthcare directives and any powers of attorney to ensure they reflect your current wishes.
A Toronto lawyer could discuss these issues with you when you are close to retirement in a general way and ensure you are aware of the importance of redoing your estate plan after divorce. They could also refer you to skilled financial professionals who can assist you with these tasks.
A divorce near retirement in Toronto has unique challenges. Therefore, it is essential to work with a lawyer who knows the terrain and is well-prepared to guide you through it cost-effectively.
Contact The Riley Divorce & Family Law firm for help and to schedule a consultation. Their astute legal team is always available to speak whenever concerns arise.
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