According to research from Legal and General (L&G) Home Finance, around 87 per cent of couples over 50 own property and, in many cases, it is one of the most valuable financial assets they possess, making it vital in divorce proceedings. Recent Office for National Statistics (ONS) data show that over-55s own around £3.5trn in housing wealth.
The report continued that 18 per cent said that one person would use their savings to buy out their partner from the property, and 17 per cent said that the joint home will be sold and the value split between the two parties.
Only eight per cent of couples who divorce over 50 will use equity release to settle finances and would allow one party to stay in the property.
Around 12 per cent said they would consult a financial adviser during their divorce, and, after divorcing, this goes up to 32 per cent.
Lifetime mortgage can be solution for ‘everyone involved’ in over-55 divorce
Craig Brown, CEO at L&G Home Finance, said: “Most couples aged over 50 will view their property as their most valuable joint asset, so when they begin the process of separating their finances, at the point of divorce, it is naturally at the top of the agenda.
“There are also practical and emotional elements attached to where the couple have been living, which often means one party wants to remain in the family home. In such cases, using a lifetime mortgage to access the equity that has built up can provide a solution that works for everyone involved.
“Splitting up can be challenging and complicated. For many couples, the assistance of a qualified financial adviser could be crucial to ensuring all assets are considered and divided fairly but, according to our research, too few look for professional help at the point of divorce.”
L&G Home Finance introduced a new lifetime mortgage product in November last year.
