Financing Divorce in Retirement
Of course, there are a number of ways to finance divorce when you and your spouse are both in retirement but their are some options are not open to you because of your age. However, your age can also work for you and open up other routes to sort out your financial settlement. This week I asked our Later Life Adviser, Edwina Hudson, for an example of where she can help couples seeking divorce to consider their options.
Case Study
Following his divorce, Robin, 71, who lives in Gloucestershire, looked at a number of options in terms of financing the split from his ex-wife. He researched the equity release option and chose to take out a Bridgewater Maximum Release Plan.
Robin’s reversion plan completed in January 2008 and he immediately used the money he released to pay off his ex-wife’s share of the property as part of their divorce settlement.
Robin acknowledges the decision to opt for the home reversion plan was a difficult one to make however he now regards it as the best one for him and the outcome was successful. Robin lives in a cottage and he wanted to ensure that he could stay in his home for as long as he wished. The plan enabled him to free up the stored equity in order to meet his own responsibilities following the divorce settlement.
Robin does not have any dependants therefore the issue of inheritance was not a major consideration. With his ex-wife now paid in full, Robin says he is looking forward to continuing his life at the cottage he loves where he intends to spend the rest of his days.
Of course, this kind of outcome is not suitable for everyone and our advice is based on each persons individual circumstances. If you are in over age 55 and want to ensure that yuo are considering all the options available to you then please call us in confidence on 0845 0179 578.
