Divorce Later in Life: What Older Couples Should Know

Why divorce is different later in life

After many years together, your EPF, pensions and savings may be a lifetime’s work. Dividing them fairly means thinking about how each of you will live in retirement.

An older spouse may have little chance to rebuild. A homemaker who spent 30 years caring for the family may have no career, no savings of their own and few job prospects. The Law Reform (Marriage and Divorce) Act 1976 lets the court take this into account.

Health matters more too. Medical costs rise with age, and cover under a spouse’s employer insurance may end with the divorce.

How EPF is divided

EPF savings built up during the marriage are usually treated as matrimonial assets. Under Section 76 of the Act, the court can divide them as part of the overall settlement. This covers both spouses’ contributions during the marriage.

EPF is not split 50:50 automatically. The court looks at money each of you put in, and at indirect contributions such as running the home and raising the children. After a long marriage, these indirect contributions often count for a lot.

EPF has its own withdrawal rules. Under the Employees Provident Fund Act 1991, members can withdraw at 55 (Account 1) or earlier in some cases. Your lawyer will need to work with EPF to carry out any court order.

Other retirement assets

These may also be divided if built up during the marriage:

• private retirement schemes (PRS)
• unit trusts
• insurance policies with a cash value
• fixed deposits
• a business one spouse built while the other ran the home

If one of you has a government pension, payments received during the marriage can be taken into account. The court looks at everything you both own, not each account alone, so give your lawyer the full picture. A business may need a professional valuation.

Maintenance after a long marriage

Under Section 77 of the Act, a wife can claim maintenance from her former husband. A husband can claim from his wife only if illness or injury stops him from earning.

Under Section 78, the court looks mainly at each person’s means and needs. Age, health and ability to earn all affect these.

For an older wife who was a homemaker, maintenance can matter a great deal. Courts accept she may not be able to return to work at a good level, so maintenance may cover her ongoing needs, not just a short transition.

Maintenance can be paid as one lump sum or in regular payments. A lump sum gives certainty and avoids chasing payments later. Your lawyer can advise which suits you.

Practical steps

• List everything: property, EPF, bank accounts, investments, insurance and debts. Get recent statements.
• Think about where you will live. If the home is your main asset, selling it may give you both money for a new place. Or one of you may keep it while the other gets more of the other assets.
• Check your medical cover. If you are covered by your spouse’s employer insurance, you will need your own after the divorce. Plan for this cost.

Looking to engage a divorce lawyer? If you are unsure how your EPF, savings or home might be split after a long marriage, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.