Divorce at 50: How to protect your wealth and plan ahead

Divorce later in life isn’t something most people expect to face. By the time you reach your 50s or beyond, you may have spent decades building a shared life, raising a family, paying off a mortgage, and planning for retirement together. So, when a relationship ends at this stage, it often brings not just emotional upheaval, but financial implications as well.

Understandably, one of the first concerns people have during this time is, “What happens to everything we’ve built?” The family home, pensions, savings, these aren’t just numbers on a page. They represent years of hard work, security, and stability. And when those foundations are suddenly in question, the future can feel unclear.

The good news is you don’t have to figure it all out alone. With the right guidance and a calm, clear plan, it is absolutely possible to protect your wealth and regain a sense of financial confidence, both during and after the divorce process.

Why the family home often becomes the focal point

For many couples, the home isn’t just where life happened, it’s also their most valuable asset. So, it’s no surprise that around 60% of divorcing couples over 50 focus heavily on the value of their jointly owned property during settlement discussions.

In fact, 11% of individuals in this age group rely on their property wealth to cover the costs of separation, either by selling the home or accessing equity. When you consider that homeowners over 55 collectively hold over £3.5 trillion in property wealth, it becomes clear just how central property is to these decisions.(Opinium Research 2024)

But knowing what to do with that asset isn’t always straightforward. One partner might want to remain in the home, while the other needs their share of the equity to start again. For some, equity release becomes a viable option allowing access to funds without selling outright. Across England and Wales, homeowners accessing equity in this way are unlocking substantial value, often tens of thousands of pounds, which can help one or both parties take their next steps with greater financial flexibility.

These are big decisions, and they come with trade-offs. Keeping the home can offer emotional comfort but may strain finances. Releasing equity might ease short-term costs but affect long-term financial security. And selling the home could offer both individuals a fresh start, albeit a difficult one emotionally.

How a wealth adviser helps:

They can assess future housing costs, provide impartial projections, and ensure that decisions made today support your long-term financial goals.

Understanding the value of your pension:

Pensions are often one of the most valuable assets in a divorce, but they’re also frequently misunderstood. In the UK, courts may issue Pension Sharing Orders (PSOs) to divide benefits fairly. In Scotland, only the portion built up during the marriage is taken into account, and it’s valued at the date of separation, which can have a significant impact.

How a wealth adviser helps:

They can help you obtain accurate valuations, clarify your options, and work alongside your solicitor to ensure pension assets are used effectively as part of your long-term financial planning.

Reviewing savings and investments:

Savings accounts, ISAs, investment portfolios and business assets are key parts of any financial settlement. In most parts of the UK, these are assessed jointly, whereas in Scotland, only those accumulated during the marriage are considered.

How a wealth adviser helps:

They offer a clear breakdown of assets, evaluate tax implications, and guide you on dividing investments in a way that supports future stability and growth.

Understanding debt and shared liabilities:

Debt can easily be overlooked during divorce, yet it can pose serious risks. Even if debts are in your partner’s name, you may still be liable if they were incurred during the marriage. This includes credit cards, personal loans and overdrafts.

How a wealth adviser helps:

They can help identify liabilities early, understand how repayments will affect your budget, and support you in rebuilding financial resilience moving forward.

Updating Wills, Powers of Attorney and beneficiaries:

Divorce doesn’t automatically update legal documents. If your will, pension or insurance policies still list your former spouse as a beneficiary, this could lead to outcomes that no longer reflect your wishes.

How a wealth adviser helps:

They coordinate with your solicitor to ensure all relevant documents, including wills, pensions, powers of attorney and trusts, are reviewed and updated accordingly.

Why expert advice can make all the difference

Despite the financial complexity involved, only 8% of people divorcing after 50 seek professional financial advice during the process. That means many are navigating property settlements, pension division, and future planning without tailored guidance, at a time when even small missteps can have lasting impacts.

What’s often overlooked is how closely divorce at this stage intersects with retirement planning. Decisions about splitting pensions, accessing investments, or downsizing a home aren’t just about today, they shape your income, tax position, and financial independence for decades to come.

Speaking with a financial adviser can provide clarity. It helps you see the full picture, evaluate options objectively, and make confident decisions aligned with your future, not just the immediate situation.

How a wealth adviser differs from a solicitor:

Solicitors play a crucial role in guiding you through the legal aspects of a divorce. They manage the settlement process, ensure legal compliance, and advocate on your behalf. However, their remit typically doesn’t include broader financial planning. A wealth adviser complements your solicitor by helping you plan for life beyond the settlement. They offer insight into how choices made now will affect your retirement income, tax position and overall financial wellbeing. Together, they help ensure that your legal and financial needs are both fully addressed.

Balancing sentimentality with financial practicality

Letting go of the family home can be one of the most emotional aspects of a divorce. It’s more than just bricks and mortar, it’s the setting for a lifetime of milestones. But when finances are tight, or one person cannot afford to buy out the other, holding on for sentimental reasons can sometimes lead to strain later.

It’s important to pause and reflect: Does staying in the home support your financial well-being and long-term goals? Or could selling or downsizing provide more freedom, flexibility, and peace of mind?

There’s no “right” answer, it’s about what works best for you. A good adviser can help you run the numbers and understand the implications, so your decision is grounded in both emotional honesty and financial realism.

Try to look forward with clarity

Divorce later in life may feel like a significant turning point, but it is also an opportunity to refocus and rebuild. You have much ahead of you. By taking the right steps now and seeking trusted advice, you can maintain control of your finances, protect your future and move forward with confidence and optimism.

At Fairstone, we offer expert financial advice that’s personal, practical, and compassionate. If you’re ready to take the next step, get in touch, we’ll guide you through the options and help you build a path toward lasting financial stability.

THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, TAX, OR LEGAL ADVICE.

TAX TREATMENT DEPENDS ON INDIVIDUAL CIRCUMSTANCES AND MAY CHANGE. ALWAYS SEEK PROFESSIONAL ADVICE BEFORE MAKING FINANCIAL DECISIONS.