Reports suggest that many family lawyers and solicitors see a rise in divorce enquiries in the first week of January, with some terming the 5 January ‘Divorce Day’.
Daniel Bell, director and mortgage adviser at Bell Financial Solutions, said from a mortgage perspective, his firm did see an increase in mortgage-related enquiries, but these were rarely from people who were already divorced.
He explained: “Most come earlier in the process, often at the point where separation is being discussed or has just occurred. Many are seeking clarity rather than action, wanting to understand what is realistically possible before legal decisions are made.”
Bell said common issues were around affordability, timing and a “significant knowledge gap” about options available.
“When a household income splits into two, the maths changes immediately. One party may want to remain in the family home, often for stability or childcare reasons, but finds that refinancing alone is not straightforward. Lenders assess income, outgoings and sustainability on an individual basis, and assumptions that were workable jointly often no longer apply,” he noted.
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Bell added that divorce and mortgage processes “do not run neatly in parallel”, as consent orders, settlements and court timelines can move more slowly than mortgage offers, and this “mismatch can create pressure if advice is taken too late”.
“I regularly see cases where people commit to legal positions without understanding how lenders will interpret the outcome,” he said.
Bell added that there can be a knowledge gap, as some clients assume that selling is inevitable or transferring a mortgage into one name is “simply an administrative exercise”.
“In reality, outcomes depend on income structure, credit profile, future maintenance arrangements and how assets are divided. None of these can be viewed in isolation,” he said.
Bell said that having co-authored a divorce guidance book and prepared mortgage capacity reports for court proceedings and mediation, a theme that “consistently stands out” is that “early, informed advice changes outcomes”.
“Courts increasingly expect financial decisions to be grounded in evidence, not assumptions. A clear mortgage capacity assessment can prevent unrealistic expectations forming on either side and often helps negotiations progress more constructively.
“For those facing separation, my advice is simple. Speak to a mortgage professional early, even if you are not ready to make changes. Understanding borrowing capacity, lender attitudes and realistic scenarios provides a factual framework for decisions that are otherwise emotionally charged. It does not force action, but it does prevent surprises later.
“Divorce is rarely just a legal process. Housing stability, long-term affordability and financial independence all sit at its core. Addressing the mortgage implications early is not about rushing decisions; it is about making sure they are grounded in reality,” he said.
Higher mortgage rates could narrow options for divorcees looking to buy solo
Ben Glassman, financial planning partner and head of family and divorce, agreed that getting independent legal and financial advice early in the process was key, even if the parties are on good terms.
He said: “Independent financial assessments can benefit both the divorcing parties, achieve clarity around the real value of the couple’s matrimonial estate, and shape the divorce settlement to achieve an optimal outcome for the long term.”
Glassman said property was “usually the biggest asset”, and if one partner wants to stay in the family home, they will often have to forgo the majority of the other assets, such as savings and pensions.
“One spouse often wants to hang on to the family home when getting divorced, especially where children are involved. But keeping the home doesn’t always make financial sense when taken into context with other assets. A property one lives in doesn’t produce an income and parts of it can’t be sold to meet spending.
“At the same time, higher mortgage rates have narrowed the options for those who need to borrow to buy a new home, as many divorcees do. Elevated mortgage rates can make finding a solution to the property conundrum for some divorcing couples a lot trickier,” he said.
Glassman said staying in the family home has traditionally been the “low-cost option, as it will avoid some legal, mortgage and property transaction fees”, but the person who stays will have to either sacrifice substantial other assets or find the money to buy the other’s share of equity.
He noted that the proposed council tax surcharge in the most recent Budget could also increase the cost of one person staying in a high-value home substantially from 2028.
“If selling the home is deemed the best option, this could mean having to pay an early repayment charge if the mortgage was fixed. However, it is often feasible for one party to port an existing fixed mortgage, and some lenders even allow couples to split and port a fixed rate loan.
“With rates where they are, a single buyer might find they can afford less than they’d hoped, without moving to a cheaper area – and this will be especially the case for older borrowers, who might find lenders less willing to allow monthly costs to be kept down by extending the loan term beyond 20 or 25 years, or into retirement, when income is likely to be lower,” he explained.
Later life divorces impact retirement income and affordability without proper advice
Recent Legal & General (L&G) research found that around 17% of all divorces occurred in later life, which it defined as over the age of 50.
Those divorcing in later life found that their incomes fell by £7,753 in the year following their divorce.
A quarter said it would be harder to recover their savings, as they are past their peak earning potential, and 13% said they would never financially recover.
Nearly a third said they would need to downsize their home, almost a quarter said they expect to live on a lower income and 15% were forced to delay their retirement.
Figures also showed that around one in 10 couples over 50 use property wealth, either through sale or equity release, to fund the cost of divorce.
Lorna Shah, managing director of retail retirement at L&G, said: “Retirement incomes are being stretched further than ever as people live longer and often enter retirement without sufficient savings. A divorce can make this challenge more complex.
“Our research shows that separating later in life can influence both immediate finances and longer-term plans. With less time to rebuild savings, many people adjust their expectations: delaying retirement, downsizing their home, or accepting a smaller income than they’d planned for.
“However, there are positive steps people can take to protect their financial future. Pensions are often one of the most valuable assets a couple has and should be considered in the same way as the family home during a separation. Only 8% of people who divorced after 50 sought advice on this, yet expert guidance can help ensure decisions are balanced and that both partners understand the long-term implications. Taking advice early can make a significant difference to achieving a fair financial outcome.
“If you’re going through a divorce at any stage of your life, careful planning is essential to protect your future – we’ve produced a financial health check tool to help.”
Adrian Moloney, group intermediary director at OSB Group, said the figures also showed that only 8% consult a financial adviser before making decisions like waiving rights to their partner’s pension.
“This can significantly reduce borrowing power and limit housing options for at least one party. That makes access to flexible lending and good broker advice critical.
“As affordability slowly improves and rates stabilise, lenders and brokers have an important role to play in helping people navigate separation without losing access to secure housing, by offering solutions that reflect real-world complexity, not just headline rates,” he said.
