WHEN a marriage breaks down, it’s not only your heart that suffers but also your wallet.
Divorce and separation are painful – and expensive – for both parties.
These days, more and more couples are using property wealth to ease the financial struggles of a break-up.
This allows so-called “silver splitters” to stay in their homes and fund new properties, according to leading over-55s financial specialists Key Retirement.
They say nearly one in 10 customers is now divorced or separated, with couples going through break-ups releasing up to 13 per cent more than the average amount released by couples who stay together.
The growing use of equity release for divorce and separation is part of a wider shift. About a third of all divorces in the UK happen to couples aged over 55.
Government figures show that more women over the age of 55 are getting divorced, despite divorce rates having dropped nearly 30 per cent in the last decade.
It’s no wonder that single women account for nearly a quarter of Key Retirement’s sales – compared with just 11 per cent of clients who are single men.
The rise in divorce among women aged over 55 is partly driven by more financial independence and by people living for longer.
Dean Mirfin, technical director at Key Retirement, said: “The rise in divorce among women over-55, despite the overall drop among other age groups, is a sad reality and is reflected in the equity release market.
“Couples in that age group will, in general, have more valuable assets to split and more complex finances. “So there is a need for straightforward and fair solutions, to which equity release can contribute. Equity release enables one partner to remain in the home while allowing property wealth to be shared.
“It increases the funds available for the other partner to fund a new home and improves their chances of being accepted for a mortgage at a time when finances are stretched.”
Anyone looking to release equity from their home can get Key’s independent guide to equity release by calling 0800 531 6027 or visiting www.keyretirement.co.uk .
This article is brought to you in association with Key Retirement.
For your FREE guide to releasing cash from your home call FREE on 0808 208 2362 or visit www.keyretirement.co.uk/dailyrecord
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