A survey of divorcing couples over the age of 50 has revealed one in ten use the proceeds from the sale of the matrimonial home to fund the cost of legal proceedings.
Legal & General’s research explored the financial impact of divorce in later life and found property wealth is the most significant financial asset most couples have. According to the Office for National Statistics people over 55 hold the majority of housing wealth in the UK, estimated at c.£3.5 trillion in property assets alone.
The ONS also report the number of ‘mature divorcees’ has increased by 75% over the past 20 years. In the decade from 2005 to 2015, the number of men divorcing aged 65 and over rose 23 per cent, with a 38 per cent increase for women. Longer life span and the desire to exit unhappy relationships rather than staying together ‘for the sake of the children’ have been cited as reasons for this increase. Other reasons include previously being divorced, and the cultural shift toward both partners having financial independence
One in 10 (11%) couples who divorce after the age of 50 use money from their property to fund the cost of their divorce, according to the research. When it comes to splitting the property asset, one in five will buy the other partner out using savings and one in 20 will use equity release. Despite the complexity of dividing finances, only 8% take financial advice about their separation.
Lorna Shah, Managing Director, Legal & General Retail Retirement said:
“For many couples over 50, their home holds huge sentimental value, as well as being one of the most significant financial assets they jointly own. It’s therefore not surprising that property is the priority during discussions for over half of divorcing couples. What is surprising is that only 8% take financial advice at such a complicated and emotionally charged point in their lives. This is particularly important for couples aged over 50 as the decisions made can have significant consequences on their retirement plans. It’s best to ensure they’ve explored all of the options available to them and chose those that best suit their individual circumstances.”
