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Equity release may reduce divorce pain

One of the more surprising trends to affect the over-60s recently has been an increase in the divorce rate.

The latest Office for National Statistics figures show that more than 13,700 people aged over 60 were granted a divorce in 2009, up 4% in two years.

Compare this with all age-groups, where divorce rates fell across the board by 11%.

The older generation are often cash/asset rich compared with younger people, who are perhaps not divorcing due to a lack of resources.

Assets often include the family home, which has grown in value over the years.

Of course, the reasons for divorce are as varied as the people who choose to part, but finances are often at the heart of negotiations once a split is instigated.

Equity release can play an important role in these discussions, particularly if one party wants to remain in the home and is willing to buy out the other’s share.
Alternatively, one partner may not have sufficient funds following a split and might turn to releasing equity to buy a new home.

It’s the high profile, big money divorce cases that grab the headlines, but average couples going through this process will often require more help as there is perhaps less money to share around.

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