Planning Through Grey Divorce
Building clarity and confidence for the next chapter
At a stage often associated with stability, you may find yourself navigating significant change instead.
Today, more Canadian couples are separating later in life, a trend known as grey divorce, meaning divorce after age 50. Recent reporting by CBC[1] points to longer life expectancies, changing priorities, and major life transitions such as retirement or an empty nest as factors contributing to this growing trend.
As people look ahead to what may be decades of life after retirement, many find themselves reflecting on how they want those years to unfold. Though challenging, this can be a time to realign priorities and redefine what fulfillment and financial security mean for the future.
The Financial Impact of Grey Divorce
Divorce at any age brings financial change, but later in life, the implications can feel more complex. By this stage,many couples have spent years, and often decades, building wealth together, with retirement savings, pensions, housing, insurance, and estate plans closely intertwined. When assets are divided, there is typically less time toadjust or rebuild.
Grey divorce can reshape the financial picture in several ways:
- Retirement readiness needs to be re-evaluated. Assets that once supported one household now need to support two.
- Income expectations shift. Separation can affect future retirement income, pension benefits, and the way assets are used to support long-term goals.
- Long-term plans need to be adjusted. Estate plans, beneficiaries, and legacy goals often change after separation.
- Financial impacts can differ for women. Lower lifetime earnings, career pauses like maternity leave, smaller pensions, and longer life expectancy can compound the financial effect of a later-life divorce.
In Canada, later-life separation can also affect pensions and certain government benefits, including Canada Pension Plan (CPP) credit splitting and survivor benefits. Longevity adds another layer, as financial decisions made today need to support decades to come.
Tools to Help Bring Clarity During Divorce
Structured tools can help families gain clarity during a grey divorce. Ask for our Navigating Divorce: Financial Planning Checklist and Retirement Checklist, or explore your options using our Retirement Calculator.
Beyond the Numbers: Financial Planning After Grey Divorce
In periods of change like this, financial planning often becomes less about optimization and more about realignment. This is where thoughtful conversations with your financial advisor can help bring structure and clarity to important financial decisions.
A conversation with your advisor can help you:
Take stock of your current situation, bringing together individual assets, income sources, obligations, and goals into a clear picture.
Clarify future priorities, recognizing that financial goals and retirement plans may evolve following a major life change.
Reframe retirement planning, not as a fixed destination, but as a next chapter that can adapt as circumstances change.
Navigate complex decisions, including tax, pension, and government benefit considerations, while coordinating with legal, estate, and tax professionals when needed.
Looking Ahead with Confidence
Change later in life can be challenging, but it can also create an opportunity to take stock of where you are today and consider what you want the years ahead to look like. With thoughtful planning and informed decision-making, your financial strategy can evolve alongside your circumstances.
The future is yours to shape.
Lean on your advisor for trusted guidance as you navigate life after divorce and realign your strategy for what comes next.
Securities-related products and services are offered through Raymond James Ltd. (RJL), regulated by the Canadian Investment Regulatory Organization (CIRO) and a Member of the Canadian Investor Protection Fund. RJL financial/investment advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund. Solus Trust Company (“STC”) is an affiliate of Raymond James Ltd. and offers trust services across Canada. STC is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund.
1. CBC Radio, Why more Canadians are getting divorced later in life, May 2025.
