Welcome back to another episode of the 360 Money Matters Podcast! This week, hosts Billy Amiridis and Andrew Nicolaou take on a topic they’re seeing more and more of in their work with clients: grey divorce, or separations happening later in life, typically after the age of 60.
Billy and Andrew explain why divorce rates for people over 60 have been climbing even as overall divorce rates fall, and why this stage of life brings a unique set of financial challenges. Unlike a younger couple with decades ahead of them to rebuild and let compounding work in their favour, an older couple separating has far less time and far fewer options to recover financially.
The conversation covers how superannuation and the family home are usually the two biggest assets in play, the different ways superannuation can be split, and why focusing purely on the percentage split can lead to a worse outcome than focusing on the actual income and lifestyle result at the end of it. Billy and Andrew share a real client example of how prioritising the family home during a separation led to a costly downsizing decision years later.
They also discuss the emotional side of separating later in life, why rushing into big financial decisions during an emotionally charged period can backfire, and why collaborative law can be a more cost effective and less adversarial alternative to a traditional legal battle. The episode closes with practical tips for anyone going through a separation, from record keeping and asset valuations to setting clear interim arrangements.
This episode is for anyone going through, or supporting someone going through, a separation later in life, as well as anyone wanting to understand how these decisions can affect long term financial security. It’s a candid, practical look at a topic that doesn’t get talked about often enough.
This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorised representatives and credit representatives of Akumin Financial Planning – AFSL 232706.
Episode Highlights
- Why divorce rates for people over 60 are rising even as overall divorce rates fall.
- Why older couples have far less time and fewer options to financially recover from a separation than younger couples.
- How superannuation and the family home are typically the two main assets divided in a separation.
- The difference between a payment split and a flagging order when dividing superannuation.
- Why focusing on the percentage split rather than the actual income outcome can leave someone financially worse off.
- A real example of how prioritising the family home during a separation led to a costly downsizing decision years later.
- Why rushing into big financial decisions during an emotionally charged separation can backfire.
- How collaborative law can reduce legal costs and lead to a fairer outcome than an adversarial legal process.
- Practical steps to take during a separation, including record keeping, asset valuations, and setting clear interim arrangements.
