One in 13 divorcing couples over the age of 50 will turn to equity release to settle their finances.
Research from Legal & General Home Finance found property is the priority asset up for discussion at the point of divorce for over 50s, with 58 per cent discussing the value of their joint home as they prepare to separate.
Some 18 per cent of people said they would buy their partner out using savings while 8 per cent would turn to equity release, still allowing one party to stay in the home.
Only 12 per cent of couples said they would seek financial advice when they divorce however, 32 per cent said they would be more likely to seek it in the future after divorcing.
Craig Brown, chief executive of Legal & General 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.
"Using a lifetime mortgage to access the equity that has built up in a property 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.”
This comes as Lesley Mackintosh, partner at Mazars discussed how mediation will play an increasing role in the divorce process this year.
But despite the shift away from traditional legal support, she said it was important to remember financial advice and support were still vitally important and should not be overlooked.
alina.khan@ft.com
