20 March 2026
in Law Society Gazette by Pat Seaward, Business Relationship Manager, SIFA Profesional
Published 20th March 2026
I want you to cast your mind back to the start of the new year, as for many it is a time for reflection. Although 'Divorce Day' is considered a myth, certain law firms have noted a rise in enquiries during early January, as people move past the 'festive period' and begin to plan for the future. While divorce can be both emotionally and financially challenging at any stage of life, recent research suggests that ending a marriage later in life can have a considerable impact on retirement plans. For family solicitors advising later life clients, this trend introduces risks that go well beyond the legal mechanics of divorce.
Strengthening outcomes in later life divorce through collaborative partnership
Commonly known as "silver splitters", these situations usually involve couples aged 55 and older who are parting ways after decades of marriage. Although law firms are well-versed in the emotional and legal intricacies, the financial ramifications of separation in later life introduce distinct challenges that can greatly affect clients' long-term wellbeing. This highlights the importance of a robust collaboration between legal and financial experts.
Recent research conducted by Legal & General, has uncovered that over 200,000 individuals who divorce after reaching 50 years old (15%) are compelled to postpone their retirement due to the financial burdens associated with separation*. For those who might have been nearing retirement with a clear vision, divorce can drastically alter the landscape, transforming what should be a time for planning into a phase of reconstruction.
Pensions: an often ignored asset
Pensions, despite their significance, are often neglected in divorce settlements. The research indicates that merely 25% of individuals who divorce after the age of 50 consider pensions in their settlement talks. Concurrently, almost a third (31%) forfeit their rights to their spouse's pension, while only 8% consult financial planners prior to making such decisions.
Since pensions typically form the foundation of retirement income—whether through annuities, drawdown, or a mix of both—these choices can lead to enduring repercussions. In the absence of expert advice, individuals may inadvertently make decisions that severely compromise their long-term financial stability.
Why early financial input reduces later life divorce risk
Early financial involvement in later life divorce is not an optional enhancement to the legal process; it is a material safeguard against settlement terms that may later prove inadequate or unsustainable. For clients in or approaching retirement, the scope for financial recovery is limited. Decisions taken during negotiations—particularly those relating to pensions, asset division and income sustainability—have irreversible long term consequences. The integration of regulated financial analysis at an early stage therefore strengthens the integrity of legal advice.
A collaborative model—legal advice led and informed by regulated financial analysis—is not window dressing. It can:
• Clarify the whole of life picture at disclosure
stage, reducing later surprises.
• Model post settlement cashflows, including tax,
to test whether proposed terms meet realistic
income needs.
• Stress test options (e.g., pension sharing vs.
offsetting; annuity vs. drawdown; timing of state
pension and DB scheme commencements).
• Protect vulnerable clients, especially the spouse
who has not managed household finances and may
under appreciate longevity or inflation risk.
Done well, this input supports the consent order process rather than complicates it, and can reduce the risk of complaint where outcomes disappoint after the dust settles.
A partnership that adds value to both firms
When clients receive coordinated legal and financial advice, they tend to approach decisions with greater clarity and confidence. A firm can benefit from smoother proceedings, while clients feel more supported and empowered at a challenging point in their lives.
By collaborating more closely on divorce cases in later life, a law firm can provide a service that is both empathetic and technically sound. The right financial planner can enhance your legal knowledge with straightforward, actionable financial planning that empowers your clients to progress with assurance. Whether it involves evaluating pensions, organising settlements, or assisting clients in adjusting to their new financial situations, a collaborative approach can contribute value to your process and improve your client outcome.
*Later-life divorce: the underestimated risk to retirement plans