Financial planning after a grey divorce: What you need to know

Divorce at any age is emotionally and financially challenging, but for those separating later in life – often called ’grey divorce‘ –  the implications can be particularly complex. 

After decades of shared finances, assets and life goals, finding your footing again can feel daunting. Grey divorce financial planning is about balancing practical financial decisions with emotional recovery, helping you build confidence and stability as you navigate this new stage of life.

Understanding your new financial picture

Finances in a marriage are often deeply intertwined. The first step is to get clear on what your financial life looks like now as an individual. This means taking stock of your assets, liabilities, income and expenses, as well as understanding how superannuation, investments and property will be divided. For many experiencing divorce after 50 in Australia, this process can feel like starting over, but it also offers an opportunity to take stock and plan for greater financial independence.

Many people feel pressure to make big financial decisions quickly, but it’s important to take the time to understand your options. Buying yourself some breathing space allows you to make decisions based on long-term financial sustainability, not short-term emotion.

For example, holding on to the family home can feel like a stabilising choice, especially if adult children still live there, but it’s worth considering whether it’s financially practical. Even without a mortgage, ongoing costs and maintenance can be significant. It may make sense to explore downsizing or alternative arrangements once you have a clearer view of your future needs.

Superannuation and retirement planning

Superannuation is often one of the largest shared assets in a relationship, so understanding how it’s divided is critical. Super splitting rules allow for an equitable distribution, but once that’s settled, it’s time to revisit your retirement plan. Superannuation and divorce are closely linked, and understanding how your super is divided – and how to rebuild it afterwards – is key to maintaining long-term financial security.

You may find your original retirement timeline needs to shift. Many people sensibly reassess and decide to work a little longer to rebuild their financial base. Depending on your age, transition-to-retirement strategies can provide flexibility, offering access to some superannuation while you continue to earn an income.

For those in their 50s and 60s, reviewing contribution strategies, potential eligibility for downsizer contributions and even the age pension can all form part of a renewed, realistic plan for retirement security. Effective retirement planning after divorce can help ensure you continue working towards your lifestyle goals while adjusting to your new financial circumstances.

Budgeting and cash flow after separation

Life on a single income can be an adjustment, especially after years of shared financial responsibility. Creating a clear, realistic budget helps you understand your essential costs and where you might need to make changes.

Post-divorce, it’s about regaining control. Steps like setting up your own banking, rebuilding savings and re-establishing emergency buffers can help restore confidence and ensure that day-to-day decisions support your broader financial goals. Taking control of your cash flow and setting clear financial priorities are the first steps toward achieving financial independence after separation.

Protecting yourself with insurance and estate planning

After divorce, it’s crucial to review your own insurance needs – including income protection and life cover – to ensure you’re financially protected if something unexpected happens.

Estate planning also takes on new importance. Updating your will, superannuation beneficiaries and powers of attorney ensures your wishes are carried out and the right people can make decisions on your behalf if needed. If you don’t have adult children or close family to step into these roles, it’s important to think carefully about who you trust to act in your best interests.

Tax and legal considerations

Separation can have a number of tax and legal flow-on effects, so it’s wise to get professional guidance early. The division or sale of assets may trigger capital gains tax, particularly for investment properties or shares. It’s important to understand any exemptions or rollover relief available under family law settlements.

Beyond the immediate division of assets, it’s also worth reviewing how future investments are structured. Setting up ownership and income arrangements in a tax-effective way can make a meaningful difference to your long-term outcomes.

On the legal side, updating key documents – your will, powers of attorney, binding death benefit nominations and insurance beneficiaries – ensures your financial and personal affairs reflect your new circumstances. This not only provides peace of mind but also prevents complications for your loved ones down the track.

Redefining your long-term goals

Once the dust begins to settle, the focus turns to rebuilding and looking ahead. This is where thoughtful financial planning can make a real difference. It’s about redefining what’s important to you – whether that’s retirement lifestyle, travel, supporting family or simply feeling secure – and creating a roadmap to get there.

Professional advice can help you understand what’s achievable with your current assets and income. For some, that might mean adjusting expectations around retirement timing or supplementing income through part-time work. For others, it could be about maximising investment opportunities or planning for future windfalls such as an inheritance or business sale.

Regardless of the details, having a clear plan brings peace of mind. It shifts the focus from loss to opportunity and the chance to rebuild on your own terms.

Moving forward with clarity and confidence

Grey divorce can feel like starting over, but it’s also a chance to design a future that reflects your values and goals. Taking time to understand your new financial position, protect your assets and plan strategically will help you move forward with confidence.

At Apt Wealth Partners, we help clients navigate life’s major transitions with care, clarity and long-term perspective. If you’re experiencing divorce later in life, contact us to speak with an Apt adviser about protecting your wealth and planning for a secure financial future. With Apt Wealth financial advice, you’ll have the support and guidance to make informed decisions and move forward with clarity and confidence.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.