By Natalie Previtera
CEO, NGS Super
Australian power couple Hugh Jackman and Deborra-Lee Furness, made waves when they announced the end of their 27-year marriage, citing irreconcilable differences.
But Jackman and Furness are not alone. They are part of a growing demographic trend of ‘grey divorce’, which refers to older couples ending their long-lasting marriages or relationships later in life. According to the Australian Institute of Family Studies, the divorce rate for women aged 45 and over has been steadily increasing since 1986.[1]
Why grey divorce can hit women harder
Grey divorce is emotionally stressful and can also significantly impact both parties’ financial futures. However, it can be especially challenging for women – particularly those who may have shared major financial assets with their partners for decades, but without playing an active role in financial decision making.
For example, statistics show that older Australian couples are more likely to have joint bank accounts[2] and jointly own property.[3] However, academic research also reveals that men are still more likely to be the financial decisionmaker in relationships, while women have less power than men in negotiating financial decisions.[4]
The major financial asset that’s often overlooked
Major assets like real estate typically spring to mind in considering the financial side of divorce, but there one that’s often overlooked. Though considered the second largest marital asset for most Australians, most divorcing couples fail to consider superannuation in property division, rendering it a hidden cost.[5]
Critically, the median value of women’s superannuation at divorce is $5,590 compared with $26,152 for men,[6] making single, divorced or widowed older women more vulnerable to poverty, housing stress and homelessness.[7] There are several reasons behind this, some common ones being Australia’s 13% gender pay gap[8] and women not receiving super on the 18-week paid parental leave scheme.[9]
Three tips to help secure your financial future
Understanding how to best manage superannuation in divorce is pivotal as relationships evolve and change. Here are three key tips to help grey divorcees secure their financial future:
- Know your rights and entitlements. You can access your spouse’s super information and apply for a fair division of super assets during divorce.
- Get expert help. A professional can guide you through divorce’s legal and financial aspects and help you prepare for your future needs.
- Review and update your super. After your divorce is finalised, you should review your super account and ensure it reflects your current situation. You may need to update your personal details, beneficiaries, investment options, insurance cover, and contributions.
- Know your rights and entitlements. You can access your spouse’s super information and apply for a fair division of super assets during divorce.
- Get expert help. A professional can guide you through divorce’s legal and financial aspects and help you prepare for your future needs.
- Review and update your super. After your divorce is finalised, you should review your super account and ensure it reflects your current situation. You may need to update your personal details, beneficiaries, investment options, insurance cover, and contributions.
While divorce affects everyone differently, early financial awareness and engagement can help you come through what’s often a tough process. As always, small changes now can mean a big difference for the future.
