Grey Divorce in Calgary - Legal Considerations
By Benjamin Szalay-Anderson, Articling Student, Calgary
The Rise of Grey Divorce
Grey divorce—divorce among couples aged 50 and older—is an increasing trend in Canada, and Alberta is no exception. According to Statistics Canada, the divorce rate among those aged 50 and over increased by 26% between 1991 and 2006 and has remained stable since. The average age for divorce in Canada was 48 years as of 2020, reflecting a growing trend of later-life separations (Global News).
With a large baby boomer population, the average age at divorce is rising in Alberta.. Many couples who once prioritized raising children and career-building are now reassessing their relationships as they approach retirement. Financial disagreements, evolving personal goals, and changes in health and lifestyle can all contribute to the decision to separate later in life. Unlike mediation-focused approaches emphasizing amicable resolution, grey divorces frequently involve intricate asset division, pension considerations, and legal disputes over property and spousal support. These factors make it crucial to seek guidance from an experienced Calgary divorce lawyer who can help navigate the legal and financial complexities of a later-life separation. While the reasons for divorce in later years vary, financial complexities often make these cases more challenging than divorces involving younger couples. Unlike mediation-focused approaches that emphasize amicable resolution, grey divorces frequently involve intricate asset division, pension considerations, and legal disputes over property and spousal support. Working with an experienced Calgary divorce lawyer is essential to ensuring a fair financial outcome for those navigating a later-life separation.
Financial Complexities in Late-Life Divorce
The financial implications of divorce after 50 can be substantial, often requiring significant adjustments to retirement plans, real estate ownership, and overall financial security. Couples who have spent decades building assets together must now determine how to equitably divide pensions, properties, and investment portfolios, all while ensuring long-term financial stability. Unlike divorces among younger couples, grey divorces can leave spouses with fewer working years to recover financially, making asset protection and strategic planning even more critical. Many late-life divorces also involve substantial tax considerations and the need to revise estate plans to reflect new beneficiaries and financial priorities.
Below are some of the key financial concerns in a grey divorce:
- Division of Retirement Savings and Pensions In Alberta, retirement accounts, pensions, and RRSPs are considered matrimonial property and are subject to equitable division. This process can be complex, as certain pension benefits require specialized calculations to determine how they will be split. A Calgary divorce lawyer can help navigate the division of pensions under Alberta’s Family Property Act and ensure each spouse receives their fair share of retirement assets.
- Property and Real Estate Division Many couples in long-term marriages own valuable real estate, including the family home, vacation properties, or rental investments. Deciding whether to sell the home, buy out the other spouse’s share, or pursue alternative arrangements requires careful financial planning. The Alberta real estate market also plays a role, as property values and mortgage rates may impact the feasibility of keeping or selling assets.
- Spousal Support Considerations Spousal support is often a major point of contention in grey divorces. Unlike younger couples, where both parties may have years to rebuild financial stability, older spouses—particularly those who were homemakers or worked part-time—may face financial hardship post-divorce. Courts will assess factors such as the length of the marriage, earning capacity, age of the parties, and financial needs when determining spousal support awards. This is particularly seen in the “rule of 65” for indefinite support under the Spousal Support Advisory Guidelines.
- Corporate Investments and Business Ownership Many Albertans have accumulated wealth through business ventures, particularly in industries like oil and gas. Business ownership adds an extra layer of complexity to divorce proceedings, requiring professional valuation of corporate assets. Without proper legal guidance, a spouse may risk losing significant financial interests in a business they helped support.
Impact on Retirement and Estate Planning
One of the most significant challenges of grey divorce is its impact on retirement plans. The sudden division of retirement assets can force changes to long-term financial security, requiring adjustments such as delaying retirement, downsizing a home, or restructuring financial investments. Additionally, estate plans often need to be revised post-divorce to reflect new beneficiaries and ensure that assets are distributed according to updated wishes.
A Calgary divorce lawyer can help review estate documents, wills, and power of attorney designations to ensure they align with post-divorce financial realities. Failing to update these documents can result in unintended beneficiaries inheriting assets, creating potential legal disputes among family members.
Legal Considerations for Grey Divorce in Calgary
Navigating a later-life divorce requires an in-depth understanding of Alberta family law. Some key legal aspects to consider include:
- Family Property Act Regulations – Ensuring fair and equitable division of property and assets.
- Pension and Retirement Fund Splitting – Following Alberta’s pension division guidelines to protect long-term financial interests.
- Spousal Support Determinations – Advocating for fair support arrangements based on financial needs and earning capacity.
- Tax Implications of Asset Division – Understanding how splitting assets affects taxable income and future financial stability.
Why Work with a Calgary Divorce Lawyer?
Unlike mediation-focused divorce strategies, which emphasize amicable negotiation, high-asset grey divorces often require strong legal representation to protect financial interests. An experienced Calgary divorce lawyer can provide legal guidance on asset valuation, pension distribution, business ownership disputes, and spousal support negotiations. Additionally, working with financial professionals such as forensic accountants and retirement planners can ensure that divorce settlements account for long-term stability.
Preparing for a Secure Future
Grey divorce in Calgary presents unique financial and legal challenges that require careful planning and strategic decision-making. Whether dividing pensions, negotiating spousal support, or updating estate plans, working with a knowledgeable Calgary divorce lawyer ensures that financial rights are protected. If you are considering a later-life divorce, seeking expert legal guidance can help you navigate the complexities of separation while securing your financial future.
