Divorce over 60 can be costly for women

Friday, 05 June 2009 07:18

The number of divorces of couples over 60 has increased by 49 per cent in the last 28 years.

Each year more than 13,000 people aged over 60 divorce, but the financial effects can leave them substantially worse off - in particular woman.

Female pensioner divorcees can stand to lose on average £18,200 in lifetime income after a split.

Upon divorce a woman's pension income will fall six per cent from £254 a week to £240 a week.

Andrea Rozario, director general of equity release industry body SHIP, said: "Clearly, 'pensioner divorce' is a pressing issue as growing numbers of older people are deciding that they would prefer to spend their retirement alone."

The fall in property values has also created a further danger for couples splitting up - as the value of what is often their greatest asset has dropped substantially in the last year.

SHIP claims in such cases equity release could represent an option so people do not have to sell up.

However, it remains a complex legal situation demanding a plan so one partner can remain in the property, whilst providing a steady income that can pay the rent on another property for the other partner.

"In the current uncertain financial climate, older people should consult with their financial adviser before making any large financial decisions, in order that they consider all available options and ensure the best retirement for both parties," Ms Rozario said.

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