How property wealth enables a clean break for the over-50s
Divorce among those over 50, often referred to as “silver splitters,” is on the rise. This trend introduces financial complexities that younger couples may not face, particularly regarding property wealth. Research indicates that one in 10 (11%) couples over the age of 50 rely on property wealth, such as proceeds from selling their family home or using equity release, to cover the costs of their divorce[1].
For many in this age group, their home is not merely a place of refuge but also their largest financial asset, holding both monetary and sentimental value. With individuals over 55 owning a staggering £3.5 trillion in property assets across the UK, it’s no surprise that property dominates conversations about divorce for older couples[2]. However, the stakes are high. Decisions made during this emotionally charged process can dramatically influence retirement plans and long-term financial stability.
Property wealth in numbers
According to research, 60% of those divorcing after 50 place their home at the centre of financial discussions during separation. For some, property wealth allows for a clean break. For others, maintaining connections to the family home is a priority, often driven by familiarity, attachment, or the desire to remain close to family and friends.
When navigating this critical decision, couples have several options available to them. Around 18% of individuals buy out their partner by using their savings. Meanwhile, 5% opt for equity release, a growing option that allows homeowners to unlock the value of their property without selling it outright. Currently, an average of £69,600 can be released through equity in England and Wales, an amount that has increased by 20% over the past five years[3].
Emotional and financial challenges
For many over-50s, separating later in life presents specific emotional and financial challenges. A home often embodies years of shared memories and stability, making the division of property assets more poignant. Simultaneously, finances can become more entangled after decades together, adding an extra layer of complexity to the divorce process.
What’s surprising is that only 8% of divorcing couples in this age group seek financial advice. This can leave individuals vulnerable to making short-sighted decisions with far-reaching consequences. With retirement on the horizon, it is crucial to obtain expert guidance to weigh options and consider the short- and long-term implications of their choices. Without tailored advice, many risk undermining their future financial security.
Case for professional financial advice
The decisions made during a divorce for those over 50 extend far beyond who remains in the house or whether it is sold. These choices impact inheritance plans, investments, and retirement savings. Seeking professional financial advice ensures that all options are explored, from equity release and buy-outs to alternative arrangements that could benefit both parties.
Tailored financial advice is particularly vital for individuals who own multiple properties or possess other assets, such as pensions. These situations necessitate clarity and expert planning to ensure a fair division while preparing for the years to come. Furthermore, advisers can highlight lesser-known options, such as downsizing or temporarily renting, which may provide flexibility without compromising long-term security.
Take control of your financial future
Divorce after 50 is undoubtedly a challenging chapter, both emotionally and financially. Property, which is often the most substantial asset, requires careful consideration and expert advice to prevent hasty decisions that could impact your future.
Navigating complex processes, such as equity release or valuing a shared home, might feel overwhelming, but you need not face it alone. If you are experiencing divorce or wish to understand your options, now is the time to take action.
Source data:
[1] Opinium Research conducted 2,945 online interviews of UK adults who are divorced. The research was conducted between 25 October and 12 November 2024.
[2] Office for National Statistics, Household net property wealth by household representative person (HRP) age band: Great Britain, April 2016
to March 2020, January 2022 (most recently available).
[3] Legal & General analysis of Office for National Statistics, Median house prices for administrative geographies, September 2024.
This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. The value of your investments can go down as well as up, and you may get back less than you invested. past performance is not a guide to future performance.
