What are the financial deliberations for those going through divorce in later life?

Most separating couples want to keep their divorce amicable however they are rarely straightforward or comfortable for either party.

Going through a divorce can be a very stressful, life changing event. There are many things to consider including how to separate your finances; pensions, property, savings and investments. 

Research undertaken by Legal and General, found that since 1990 the number of overall UK divorces has fallen 40% however, the number of UK divorces for the over 60s has risen 64%. More recently and perhaps due to Covid 19 restrictions, between June and October 2020 the number of people enquiring about divorce rose by 122% compared to the year before.

The same report found that 61% of people aged 50+ consulted a solicitor during their divorce yet only 3% sought financial advice. Furthermore 31% or women compared to 20% of men stated they had financially struggled following a divorce.

Couples can use equity release in some cases to simplify the asset-splitting process in divorce. Accessing equity stored up in a property enables a partner to remain in the home while allowing the property wealth to be shared, this is an alternative option for settling property disputes.  This increases the funds that are available for the other partner to purchase a new home.

If you’re going through a divorce and wondering if equity release may be an option feel free to contact us on 01202 925 976 or speak with your solicitor.

Equity release may involve a home reversion or a lifetime mortgage, which is secured against your property. To understand the features and risks, ask for a personalised illustration. Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.

Source: The true cost of divorce (legalandgeneral.com)

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