I’m 59 with $1.2 million in investments but don’t own my home — am I financially secure enough to leave my husband and make it on my own?

Prior to that, Susan made a decent salary. And, over the years, she’s amassed $1.2 million in investments. But those investments aren’t liquid, and she’s not ready to tap into her retirement savings just yet.

She knows she’s probably entitled to some of their marital assets, but she’s worried that it won’t be enough to move out on her own. She’s also wondering if she should claim her Canada Pension Plan (CPP) retirement benefit as soon as she turns 60, even though it means a permanently reduced benefit.

Grey divorce is on the rise

Grey divorce — or divorce after 50 — is on the rise. Divorce rates among those who are 50 and older have roughly doubled since the 1990s, according to the Pew Research Centre (1).

Of those, 34% had been married at least 30 years and 12% had been married at least 40 years, with research indicating that “many later-life divorcees have grown unsatisfied with their marriages over the years and are seeking opportunities to pursue their own interests and independence.”

But grey divorcees — particularly women — tend to be less financially secure than married or widowed seniors. Grey divorce not only increases expenses (there’s now two households instead of one), but it can change tax situations, estate plans and retirement security.

Of women aged 55 to 64, more than one in three (36%) have no retirement savings at all (compared to 22% of men), according to the HOOPP 2024 Canadian Retirement Survey (2).

“We know women make less money than men and they are more likely to work part-time or take time off work to have children or look after their families,” Ivana Zanardo, head of plan services at HOOPP, said in a release. “Factor in rising expenses and prolonged high interest rates and it’s no surprise that their retirement security is paying the price.”

With grey divorce, there’s limited time to recover financially, meaning that advance preparation is crucial if you’re planning to leave your marriage later in life.

Dividing marital assets

In most cases, assets acquired while married are divided equally in a divorce. That includes the house, as well as retirement savings, government pensions and debts (with some exceptions) (3).

Even if you bought a house prior to the marriage, it could be considered the ‘matrimonial home,’ meaning that your ex could be entitled to either the home’s increase in value or a share of the equity (4).

Common-law couples aren’t legally required to split property.

Since Susan’s husband bought the home after they were married, she would be entitled to half the equity of the house (even though her husband’s name is on the deed). They’d also split their assets equally.

However, splitting investments and retirement accounts can be complex, so it’s important to consult with a financial advisor and divorce attorney who specializes in grey divorce. For this reason, it’s probably best to avoid a DIY divorce, even if the split is amicable.

It’s also important to consider alimony, particularly for women who took time out of the career to raise children. Alimony allows you to maintain a reasonable standard of living or rebuild your financial independence after divorce.

Other budget considerations

Aside from any money Susan would receive from alimony and a divorce settlement, she should list all other sources of income, as well as expenses and debts, to create a post-divorce budget.