A study released this week on behalf of Nationwide Mortgages shows that nearly three quarters of divorcees over 50 retain their homes on divorce. At a time of anxiety and change for people this is a reassuring statistic. Many divorcees will wish to preserve the main home for children still living there, whether in education or part of the growing generation in their twenties and thirties unable to get on the housing ladder themselves.
Whilst most marriages result in an equal division of the assets, it is common for one party to keep the home with the other receiving their share from other capital, where there is enough to make that possible. Even if there is not enough in savings and investments to compensate the other party for their share in the house, an arrangement - known as off-setting - can be made in the sharing of pensions so that a fair and equal final outcome can be agreed.
Most commonly in our experience the sale of a family home, even after divorce, comes when one or both former spouses retire. This is often a period of readjustment of finances, when maintenance from one to the other might stop and both readjust to living on pension income. Often downsizing the family home is a useful way to supplement retirement income and the Family Finance team at TV Edwards works closely with financial advisors and pensions experts so our clients make important investment decisions with all the necessary facts. Our view is that a divorce is just the beginning and part of our role as divorce solicitors is to see our clients set up well for future challenges.
Please get in touch with Emma Baillie, head of the Family Finance team, if you would like to speak to us about your circumstances.
See here for further details on the Nationwide survey: http://www.telegraph.co.uk/news/2016/05/15/family-home-sold-in-a-third-of-silver-divorces/?utm_medium=Social&utm_source=Twitter&utm_campaign=Echobox&utm_term=Autofeed#link_time=1463389792