Monday, June 15, 2009

Silver Divorces

According to The Independent a recent survey by the equity release trade body showed that 13,678 couples over 60 got divorced last year, a 49 per cent increase since the 1980s. Marilyn Stowe says: "The problem is there are only limited assets and funds in the majority of cases and you simply can't stretch those assets to attain the same standard of living as the couple may have previously enjoyed."

The current financial climate adds particular complications to dividing assets for those divorcing late in life;

• the sale price that reflects what the property was worth until recently is potentially unachievable

• the option of equity release if one party wishes to stay in the home can lead to a reduced payout.

• with a weak stock market it is not a good time to liquidate stocks and shares and the knock-on effect is a reduction in retirement capital

• fewer than 1 in 10 divorces involve an element of pension sharing and often, wives are left disadvantaged

• for a state pension, divorced couples will have to revert from the married state pension allowance back to the individual state pension allowance.

Full article Source The Independent 14 June 2009


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