Divorce is often associated with younger couples, but an increasing number of Australians in their 60s and beyond are choosing to part ways later in life.
Known as “grey divorce,” this trend is reshaping retirement plans, financial stability, and living arrangements for many seniors.
Unlike younger divorces, where individuals have decades to rebuild their wealth, older divorcees face a unique set of financial challenges. Splitting assets, dividing superannuation, and deciding what to do with the family home can be complex and emotionally charged.
For many seniors, a Reverse Mortgage offers a practical and empowering way to navigate this life transition—providing financial flexibility while allowing them to remain in their home.
[ ALSO READ: Reverse Mortgage Trends: Divorced Women & Debt Consolidation ]
The Rise of Grey Divorce in Australia
Grey divorce is no longer a rare occurrence. In fact, it is becoming one of the fastest-growing divorce trends in Australia.
📊 What the Numbers Say:
- Divorces among Australians aged 60 and over have nearly doubled in the last two decades.
- In 2023, the median age of divorce rose to 47.1 years for men and 44.1 years for women, showing that long-term marriages are increasingly coming to an end.
- Couples married for 20+ years now account for a significant portion of all divorces.
Why is this happening? Many older couples reach a point where they reassess their relationship after decades of marriage. Common reasons include:
✔ Empty Nest Syndrome – With children grown and moved out, some couples feel they have drifted apart.
✔ Retirement Realities – Couples may have different visions for how they want to spend their retirement.
✔ Financial Stress or Disagreements – Money can be a major factor, even later in life.
✔ Longer Life Expectancies – With people living longer, some decide they no longer want to stay in an unfulfilling marriage.
Whatever the reason, the financial implications of divorce after 60 can be significant and require careful planning.
Financial Challenges of Grey Divorce
Unlike younger divorcees who have time to rebuild wealth, seniors face unique financial challenges after a late-life separation:
🔹 Splitting the Family Home – Many couples’ biggest asset is their home, but one partner may wish to remain in it.
🔹 Superannuation Division – Retirement savings may need to be divided, impacting future income security.
🔹 Unexpected Living Costs – Going from a shared household to living alone can double certain expenses.
🔹 Reduced Borrowing Power – Without traditional employment income, getting a new home loan or credit can be difficult.
So, how can seniors maintain financial stability and retain their independence post-divorce? Reverse Mortgages provide a powerful solution.
How Reverse Mortgages Can Help Seniors After Divorce
A Reverse Mortgage allows Australians aged 60 and over to access the equity in their home without selling it. Instead of making repayments, the loan is settled when the home is eventually sold.
This option empowers seniors to stay in their home and secure financial freedom without unnecessary stress.
Ways a Reverse Mortgage Can Help During Grey Divorce:
✔ Buying Out a Former Partner’s Share – If one partner wants to stay in the family home, they can use a Reverse Mortgage to pay their ex-spouse their share, avoiding the need to sell.
✔ Maintaining Financial Stability – After a divorce, adjusting to a single-income lifestyle can be difficult. A Reverse Mortgage can supplement cash flow and cover daily expenses.
✔ Avoiding Downsizing Too Soon – Many seniors don’t want to sell their home immediately after divorce. A Reverse Mortgage lets them stay in their familiar environment while they plan their next steps.
✔ Protecting Retirement Plans – Divorce can disrupt financial plans, but a Reverse Mortgage provides flexibility without draining superannuation or savings.
[ ALSO READ: Over 60’s ‘Mortgage Stress’? An Equity Release Loan Can Help ]
Are Reverse Mortgages the Right Choice for You?
Reverse Mortgages offer numerous benefits, but like any financial decision, they should be approached with careful consideration.
What to Keep in Mind:
🔹 Interest accumulates over time – Since no monthly repayments are required, interest compounds over the life of the loan.
🔹 Impact on inheritance – Using home equity may reduce the amount left to heirs, so it’s essential to weigh priorities.
🔹 Government-regulated protections – In Australia, Reverse Mortgages include a No Negative Equity Guarantee, ensuring borrowers never owe more than their home’s value.
🔹 Financial and legal advice is key – Before making a decision, speaking with a financial advisor can help determine if a Reverse Mortgage aligns with long-term financial goals.
Want to learn more about Reverse Mortgage? Find out more about how to use a Reverse Mortgage for debt consolidation or download your FREE REVERSE MORTGAGE GUIDE.
Ready to Apply? You can now check your eligibility online or call Seniors First on 1300 745 745.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before you make any decision.
