Finding financial fairness: supporting women in later life divorce
Divorce can be a costly exercise, especially if a couple have multiple financial assets to consider as they approach retirement. It’s often women who feel the financial burden from a later life divorce.
Mind the gap
Research from 1984 showed that almost half (49%) of the UK population thought that a woman’s ‘place’ was to look after the home and family1. Fortunately, attitudes to women in the workforce have changed drastically since then.
In 2025, the number of women in employment in the UK reached 72.5%, compared to 77.7% of men2; a figure that was just 55.5% when records began in 19713. Despite this progress, the gender pay gap remains of 6.9%, with the gap at its widest for women over 403.
The motherhood penalty
Beyond the gender pay gap and the glass ceiling, social inequality has had a lasting effect on the finances of women, especially mothers. Women who take time out of work to raise children, not only have less financial independence as a result, but also face more barriers when returning to work, because of a perceived skills gap, a changing environment and prejudice.
For women who divorce in later life, this inequality is amplified, as they often absorb most of the financial risk.
Waiving rights to pensions
On average, a woman now in her 50s in the UK will retire with approximately £39,654 of pension savings. By comparison, men of this age group will retire on average with the more comfortable sum of £84,2054.
Despite the inequalities women face as a result of financial sacrifices they have endured, our research shows that 31% of women who divorced the age of 50+ still choose to waive their rights to their partner’s pension as part of a divorce settlement5.
How advisers can help
Only 8% of people who divorced over 50 consulted a financial adviser during the divorce process, but advisers play an essential role in helping a couple find financial fairness5. This support can be particularly beneficial to women, 28% of women who divorced aged 50+ have faced financial struggles because of their divorce compared to 18% of men5.
- Develop professional relationships with solicitors
The earlier an adviser can be involved in divorce proceedings, the more value they can add. A solicitor can provide a referral to a divorcing client, so the adviser can engage at a stage where they can help the woman build a stable financial future. - Create an environment of trust
Divorce can take a significant emotional toll on clients. An adviser must be sensitive and empathetic to the specific needs and circumstances of each individual client, while providing clear explanations and rationale about the advice process. - Identify the financial options that would be right for your client
Tackle the taboo around pension splitting and sharing options, by having open and honest discussions with your client. Understand their unique financial situation and help them visualise the long-term financial impact of their financial decisions.
Get in touch
We specialise in helping advisers support their clients to achieve their financial goals in retirement. If you’d like to discuss how you can support your client during a later life divorce, please contact your account manager.
Divorce in later life guide
For more practical insights, you can also download our guide to navigating divorce, designed to help advisers support clients through fair and informed financial decisions.
