Gumersalls News

Gumersalls News

What Are The Financial Options For ‘Silver Separators’?

by | Aug 21, 2023 | News

More people over the age of 60 are choosing to break free from their marriages than ever before, but the biggest deterrent remains the difficulty of dividing assets after decades of joint finances. 

Although many people would like to think that if they can make their marriage last until their 60s, they can go the distance, many people are choosing to separate and embrace independence in their older years. 

This could be due to waiting for children to flee the nest, females having more financial independence than in previous generations, or the changing perception of divorce.

However, sharing finances for so many years makes it difficult for older couples, or ‘silver separators’, to divide their assets. 

In many cases, it can mean selling the family home to afford smaller properties, splitting pensions, and settling earnings or even debts. 

Chief corporate officer of Bower Home Finance Andrea Rozario even told the Lancashire Evening Post that many divorcing couples opt for equity release to sort out their finances.

“Individuals navigating divorce in their over-60 years often find themselves grappling with the necessity of utilising the property equity they’ve accumulated over time,” she stated.

Those who do not want to sell the matrimonial home or continue sharing it may consider releasing equity in the property. This could enable one partner to buy the other out of the house or gain financial independence to start the rest of their life anew. 

Divvying up assets is one of the most complicated parts of finalising a divorce, no matter the age of the couple or how long they have been together. 

This is why family mediation is often recommended before official divorce proceedings begin, with the aim of encouraging partners to come to an amicable agreement first.

Silver separators may choose to release equity, ‘birdnest’ so they take it in turns to live in the family home, or sell their assets entirely and divide them equally.