Divorce among individuals over 50 years old, commonly known as “Grey Divorce,” is becoming increasingly common in Singapore. According to the Singapore Department of Statistics (DOS), divorce rates have been rising, with a growing number of cases involving couples married for over 20 years.

In 2022, the median age at divorce was 41.5 years for women and 44.8 years for men, marking a significant increase compared to past decades. As more long-term marriages end in divorce, older couples must navigate unique challenges—especially in the areas of financial security, estate planning, and asset division.

If you’re going through a grey divorce, here are three key factors to consider:

1️⃣ Division of Assets

For couples who have been together for decades, dividing matrimonial assets can be complex and emotionally challenging. Many older couples have jointly accumulated significant assets, including:

🔹 Property (HDB flats, private residences, investment properties)
🔹 Retirement savings (CPF accounts, pension plans)
🔹 Investments (stocks, businesses, insurance policies)
🔹 Personal assets (cars, jewelry, savings accounts)

In Singapore, the Family Justice Courts aim for a fair division of assets based on:

✔️ Each spouse’s contributions (financial and non-financial, such as caregiving and homemaking)
✔️ Future financial needs of both parties post-divorce
✔️ The length of the marriage

For older couples approaching retirement, maintaining two separate households can create financial strain. It’s crucial to plan ahead, negotiate a fair settlement, and seek professional advice to safeguard your financial future.

2️⃣ Wills, Estate Planning, and CPF Nominations

Divorce does not automatically update or revoke estate planning documents, which means that your ex-spouse may still be listed as a beneficiary in your:

📌 Will – Your ex-spouse may remain a beneficiary or even the executor of your estate.
📌 CPF Nomination – If your CPF savings are still nominated to them, they will inherit your CPF money upon your passing.
📌 Insurance Policies – Your ex-spouse may still be listed as the beneficiary of life insurance payouts.
📌 Lasting Power of Attorney (LPA) – If your ex was your appointed Donee, they may still have legal control over your medical and financial decisions if you lose mental capacity.

What Should You Do?

✅ Update your will to ensure assets are distributed according to your current wishes.
✅ Review and change your CPF nomination to reflect your new preferences.
✅ Check and update your insurance policies to remove your ex-spouse as a beneficiary (if necessary).
✅ Amend your Lasting Power of Attorney (LPA) to assign a new Donee.

3️⃣ Future Financial Security

A grey divorce can greatly impact financial stability, especially for individuals who may have relied on their spouse’s income or have been out of the workforce for an extended period. Key financial considerations include:

💰 Retirement savings – How will CPF savings and pension plans be divided?
🏡 Housing arrangements – Will you continue to own your home, sell it, or downsize?
📊 Long-term financial planning – Do you have enough savings for medical expenses, insurance, and daily living costs post-divorce?

For some, joint asset ownership may be necessary due to financial constraints. This might mean continuing to co-own a business or property temporarily. However, it’s advisable to have clear agreements and an exit plan in place to avoid future disputes.

Secure Your Future with Proper Planning

A grey divorce brings unique legal and financial challenges, but with the right planning, you can protect your interests and build a stable future.

✔️ Plan for financial independence with a fair asset division.
✔️ Update your estate plan to ensure your assets go to the right beneficiaries.
✔️ Seek professional guidance to navigate CPF nominations, insurance policies, and retirement funds.

If you’re facing a grey divorce in Singapore, our estate planners can help you review your financial situation, update your legal documents, and secure your future.

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