One-in-10 later-life divorces funded through property wealth

How property wealth is shaping financial decisions for over-50s going through divorce

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New research from Legal & General has revealed that 11% of couples who divorce after the age of 50 use money from their property to cover the costs of separation.

Divorce can be financially complex at any stage in life, but for over 50s, property wealth is often the biggest asset at stake. The research found that property is the main priority for 60% of divorcing couples in this age group, reflecting the fact that homeowners over 55 collectively hold more than £3.5 trillion in property wealth across the UK.

As they navigate the financial impact of divorce, some over 50s opt to buy out their former partner using savings (18%). However, one-in-20 couples are turning to equity release to stay in their homes.

Dividing finances without financial advice

Despite the significant financial implications, only 8% of people take financial advice when going through a later-life divorce. This lack of guidance could have long-term consequences, particularly for those approaching retirement who may not have the time to rebuild their savings.

Lorna Shah, Managing Director, Retail Retirement at Legal & General, highlighted the importance of professional financial advice during such a critical life event:

“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.”

Equity release as an option for financial stability

For homeowners over 55 navigating divorce, equity release can provide a way to access property wealth without the need to move. However, as with any major financial decision, seeking professional advice is key to ensuring the best outcome for later life.

If equity release is something you do want to explore during or after your divorce, you may find some helpful information in our blog about equity release and divorce. 

If you’re ready to talk to someone, our selected advisers are on hand to answer your questions and guide you through the process. All initial advice and quotations are completely free, with no obligation to proceed. 

Only if you decide to go ahead will you need to pay a fee for advice, which can be paid directly from the funds you release. So, if equity release could help with the financial side of your divorce, why wait? Give our friendly team a call today!

Find out if you are eligible and how much you could release by calling 0808 178 3055 or request a free callback here for a time that is convenient for you.

Source

One in 10 (11%) couples who divorce after the age of 50 use money from their property: One in 10 couples who split over the age of 50 use property wealth to fund the cost of divorce. Legal and General. Accessed 25 February 2025.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn