Grey Divorce in Canada After 60: Housing and Equity Options You Should Know

Grey divorce—the term for separation or divorce after age 60—is becoming more common in Canada. And while the emotional impact can be overwhelming, the financial consequences are often underestimated.

Many couples spend decades building a shared financial life. Then, seemingly overnight, everything from housing to income security is in question.

If you're facing divorce later in life, this guide is for you. Whether you're staying in the home, looking to relocate, or simply trying to make sense of your options, the decisions you make now will shape your financial independence for years to come.

The Financial Reality of Divorce Later in Life

Grey divorce often occurs at the exact moment your financial picture is supposed to settle. Retirement is underway or right around the corner. Income is fixed. And most of your wealth is locked up in the family home.

But separation forces tough decisions:

• Can either spouse stay in the home?

• Is downsizing realistic in today’s housing market?

• Will selling the home unlock enough equity to fund two retirements?

• Who qualifies for financing without employment income?

These aren’t just legal questions. They’re deeply personal financial ones.

The Home: Asset, Anchor, or Burden?

For many divorcing couples, the home is both the biggest financial asset and the biggest point of emotional tension.

• One person may want to stay.

• One may want to sell.

• Both may need to access equity but aren’t sure how.

And with most retirement income sources being fixed (like CPP, OAS, or small pensions), qualifying for traditional financing after 60 is difficult. Banks often say no unless you have substantial liquid assets or employment income.

This is where planning and guidance matter most.

What Are Your Options?

Here are some of the most common paths people consider during a grey divorce:

1. Sell the Home and Split the Proceeds
Simple in theory, but not always ideal in practice. In today’s market, finding two suitable homes after one sale can be financially straining—especially without mortgage qualification.

2. One Spouse Buys Out the Other
If one person wants to stay, they'll often need a way to access enough equity to fairly divide the assets. Traditional refinancing is rarely possible without income.

3. Both Relocate and Start Fresh
This can feel like a clean break but brings its own set of challenges, especially with rising home prices and rental shortages in many Canadian cities.

Each of these paths has trade-offs. What matters is choosing one that doesn’t sacrifice your long-term financial security.

Why Grey Divorce Hits Harder Financially

• Two households cost more than one. From property taxes to utilities, everything doubles.

• Dividing retirement savings stretches them thinner. A pension that once worked for two doesn’t go as far when split.

• Housing transitions come with unexpected costs. From legal fees to moving costs, it adds up fast.

• Financing gets harder with age. Fixed incomes and reduced credit access make post-divorce planning uniquely difficult after 60.

How to Protect Yourself Financially

1. Work with a financial advisor or planner who understands grey divorce. Not all advisors specialize in post-retirement transitions. Make sure yours does.

2. Don’t rush major decisions. Pressure to sell, buy, or refinance quickly can lead to costly mistakes.

3. Look at all your equity access options. There are alternatives to traditional mortgages—including tools specifically designed for homeowners 60+.

4. Make sure your estate plan is updated. Power of attorney, wills, and beneficiary designations all need a fresh look.

What Not to Do

• Don’t assume you can qualify for a mortgage just because you own your home.

• Don’t rely on friends’ or family’s experiences—your situation is unique.

• Don’t overlook the tax consequences of dividing RRSPs or selling the home.

Want Clarity on Your Next Step?

Whether you're planning to stay put or start fresh, navigating divorce after 60 is too important to do alone.

You need options. And you deserve ones that respect the work you've done to get here.

📩 Download the Protected HELOC® Guide

It introduces the Protected HELOC® approach in plain language, with real examples of how Canadians 60+ are using home equity to stay financially stable through major life transitions.—including how to access equity without employment income.

Because even during separation, your financial future deserves to be protected.

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