Finances After Divorce

Untangling finances after a long-term relationship is never easy. But if you’re older, the stakes often feel even higher. There may be no working years left to ‘make it back’, and your plans for a comfortable retirement might suddenly feel shaky. This isn’t just about bank accounts and superannuation—it’s about security, independence, and control over your future. The good news? With a calm head, good advice, and a bit of planning, you can get through the financial upheaval and find stability again. Let’s take a look at how:

Shock and Adjustment

Even if the divorce was amicable, many people are caught off guard by just how much their financial lives change afterwards. You might be going from a dual-income household (or from relying on a partner’s income) to managing on your own. You may need to move, re-budget, or downsize. And there are often hidden costs: legal fees, counselling, setting up a new home, and dividing long-held assets.

It’s normal to feel overwhelmed at first. Take your time, breathe, and get some clarity. Make a list of what you own, what you owe, and what you spend each month. That’s your starting point. Once you can see your full financial picture, the path forward becomes less frightening.

Superannuation and Retirement Planning

One of the trickiest parts of grey divorce is re-thinking your retirement. You may have been counting on a shared plan—two pensions, one home, joint savings—and now you’re looking at a very different future.

If you haven’t already, get advice from a financial planner or retirement specialist. Superannuation is usually considered a joint asset and may be split as part of the divorce settlement. But how it’s split, and how it affects your retirement income, depends on your individual circumstances. A good advisor will help you restructure your finances to support a comfortable lifestyle, even if it’s not quite the one you originally envisioned.

Housing and Living Arrangements

For many older divorcees, the family home is the biggest financial and emotional asset. Deciding whether to keep it, sell it, or buy your ex out can be incredibly difficult. The sentimental pull of ‘home’ is strong, but it’s essential to ask: can I afford this house on my own?

You may find that downsizing—or even renting for a while—gives you more flexibility and peace of mind. It can also free up cash to support your lifestyle or top up your retirement fund. This isn’t about giving up—it’s about making a smart, empowering choice that allows you to thrive in your next chapter.

Earning and Budgeting on Your Own

If you weren’t the one handling the household finances, getting up to speed now is crucial. That means learning how to manage a budget, track spending, and perhaps even re-enter the workforce or take on part-time work if needed.

It can be daunting—but it can also be liberating. Taking control of your own money is a powerful step towards independence. Look at what you truly need, not just what you’re used to. Many people discover they actually need less than they thought—and that less can feel like more when it comes with peace of mind.

Entitlements and Support

Don’t forget to check what government assistance you may be eligible for, especially if your income has dropped significantly. Whether it’s a pension, accommodation supplement, or legal aid support, there may be resources available to help you get back on your feet. Ask questions and don’t be afraid to seek professional help—these systems exist for exactly these moments.

The Emotional Side of Financial Change

Let’s not ignore the emotional impact of financial upheaval. Money and self-worth are often closely linked, and losing a shared financial identity can leave you feeling insecure or ashamed. If you’ve gone from feeling financially comfortable to suddenly watching every dollar, that change can feel deeply personal.

But remember this: your value is not measured by your bank balance. You are more than your net worth, and this new financial landscape does not define your future. It’s simply the next step—and you’re allowed to ask for help along the way.

A New Relationship with Money

Divorce in later life is undeniably tough, but it’s also a chance to reset your relationship with money. You can make decisions for yourself, with your own needs at the centre. For some, it’s the first time they’ve had that freedom in decades.

You might not have chosen this path—but now that you’re on it, you have every right to walk it with confidence, curiosity, and care. With the right support, a clear picture of your finances, and a practical mindset, money after divorce can be manageable—and even empowering.