Grey Divorce in Canada: What You Need to Know About Late-Life Separation

Mar 19, 2025

Are you considering or currently going through a grey divorce in Canada? While divorce at any age is challenging, a grey divorce comes with its own unique set of complexities.

In recent years, a growing number of Canadians over 50 have been separating and divorcing. Societal, economic and lifestyle changes have had an impact on relationships, leading some to divorce.

In this post, we’ll walk you through what grey divorce means, the legal considerations you need to know and how to ensure you’re making the right decisions for your future.

What Is Grey Divorce?

There are the terms “grey separation” and “grey divorce”. The more popular term – grey divorce – refers to the separation of couples over the age of 50. Once considered rare, increasingly more older couples in Canada are choosing to part ways after decades of marriage.

While each divorce is unique, those involving older couples often present distinct legal challenges due to accumulated assets, retirement plans, and emotional considerations.

Why Is Grey Divorce on the Rise in Canada?

Understanding why grey divorce is becoming increasingly common in Canada can provide important context for those experiencing it.

Top factors that contribute to this trend include:

Changing Social Norms: Divorce is no longer seen as taboo, especially for older individuals. In past generations, divorce after a certain age was rare. However, now more people are seeking independence and new opportunities, even later in life.
Financial Independence: With increased financial independence, particularly for women, staying in a marriage that no longer feels fulfilling has become less of a financial concern. Couples are more likely to separate when they feel they have the resources to do so.
Longevity and Healthier Lifestyles: Canadians are living longer, healthier lives. Many people in their 50s or 60s want to ensure they are living authentically and in a way that brings them joy. For some, this means leaving a marriage that no longer serves them.
Retirement Planning and Reflection: As couples approach retirement, they often reassess their goals and desires. For some, the realization that they want different things in life leads to the decision to divorce.
Celebrity Influence: High-profile celebrity divorces, such as Bill and Melinda Gates or Jeff and MacKenzie Bezos, have brought attention to grey divorce, showing that it’s never too late to start fresh. While these cases may not represent the norm, they have helped normalize divorce at an older age. As such, they potentially encouraged many Canadians to consider this option.

Legal Considerations When Facing Grey Divorce

Divorce for those over 50 comes with many specific legal issues.

As you go through the grey divorce process, consider the legal implications, especially around asset division, spousal support, retirement plans and real estate.

1. Division of Assets and Property

One of the biggest legal issues in a grey divorce is asset division. In Canada, the general rule is that assets accumulated during the marriage are divided 50/50. This can include property, investments, pensions and business interests. However, some assets may be considered separate property, like those inherited or owned before the marriage.

For older couples, asset division can be more complex. This is because significant wealth has been built up over many years. As well, both spouses may have fewer years left to rebuild after the divorce. Some steps that may be taken when contemplating a division of property include:

Ensuring a comprehensive inventory of assets, including bank accounts, pensions, real estate, and any business holdings. It’s important to ensure all assets are accounted for.
Consulting a forensic accountant if you suspect one spouse may be hiding assets or undervaluing property.
Considering the tax implications of asset division. Real estate sales and other asset transfers could trigger capital gains tax or other liabilities.
Pensions and RRSPs: These retirement accounts may need to be divided as part of the divorce process. You may have to obtain specific valuations from your plan provider. As well, you may need a pension division order or other legal agreements to ensure pensions are properly divided.

2. Spousal Support and Financial Considerations

Spousal support (or alimony) is a common issue in grey divorce. Since many older couples have been together for decades, there may be significant disparities in earning potential. This is particularly true if one spouse was financially dependent or stayed at home to care for children. In these cases, spousal support may be awarded to ensure that the lower-earning spouse can maintain a reasonable standard of living.

Understand the factors that influence spousal support: These include the length of the marriage, the financial needs and resources of both spouses and each spouse’s ability to support themselves.
Use the Spousal Support Advisory Guidelines (SSAGs): While not legally binding, the SSAG guidelines help determine spousal support and can provide clarity during negotiations.
Consider the impact of retirement plans: As retirement approaches, the ability of each spouse to generate income may be limited, so spousal support calculations need to factor in retirement income and assets.

3. Retirement Plans and Pension Division

For many people undergoing a grey divorce, the division of retirement assets is a major concern. Canada has specific rules for dividing pensions and retirement savings, including CPP credits. However, given that these retirement accounts are often among the most valuable assets in a marriage, it’s crucial to understand how they will be divided.

Review your pension and retirement savings: This includes employer pensions, RRSPs, and the Canada Pension Plan (CPP). Many pensions can be divided through a legal Separation Agreement or a pension division order, which requires court approval.
Credit splitting in CPP: The CPP allows for the division of pension credits accumulated during the marriage. If you are divorced after the age of 60, you may be eligible for a share of your ex-spouse’s CPP benefits.
Consult a pension expert: Pension plans can be complicated, and you may need professional help to navigate the intricacies of dividing these assets.

4. Real Estate and Housing Decisions

Real estate is often one of the most valuable assets in a grey divorce. Deciding what to do with the family home is a key consideration. Couples may choose to sell the home and divide the proceeds or one spouse may buy out the other. For those who are nearing or in retirement, housing decisions take on additional weight. There may be limited options for affordable housing.

Determine the value of the home: Have an accurate valuation of the family home. This can help you make informed decisions about whether to sell the property or have one spouse buy out the other.
Consider the long-term financial impact: Consider the implications of keeping the family home, especially if one spouse plans to stay there. For those nearing retirement, the cost of maintaining a large property may be prohibitive.
Downsizing options: Post-divorce, many older individuals choose to downsize. It’s important to explore housing options that match your new financial and lifestyle situation.

5. Update Your Wills, Powers of Attorney, and Health Directives

After a grey divorce, updating your legal documents is essential. Your will, powers of attorney, and healthcare directives may need to be revised to reflect your new circumstances.

Update your will: After divorce, ensure that your ex-spouse is no longer named as an executor or beneficiary unless that’s your specific wish.
Review your powers of attorney: If your ex-spouse was designated as your healthcare or financial decision-maker, update this to reflect someone you trust.
Ensure your healthcare directives are current: This ensures that your wishes are followed if you become incapacitated, particularly in light of new living arrangements post-divorce.

Navigating Grey Divorce in Canada With Legal Help

While grey divorce in Canada can be emotionally and financially challenging, understanding the legal considerations can help ensure that you are making informed decisions and protecting your future.

By seeking professional legal and financial guidance, you can navigate the complexities of grey divorce and build a new chapter in your life with confidence.

If you are considering divorce, don’t hesitate to contact a family law lawyer like Kelly D Jordan to discuss your specific situation. With the right advice and support, you can work through the process and move forward into a secure, fulfilling future.

If you need legal advice regarding divorce, contact us online or call our Toronto offices at 416-849-5501 to schedule a consultation. Let us provide you with the guidance and representation you need.