The ‘Just a thought...’ looks at the options for those couples with mortgaged properties who divorce but want to ensure one partner and the children are able to stay in the family home.
It outlines how, with the help of parents, equity release plans can be utilised to fund the buy-out of one partner from the home, allowing the family a minimum of upheaval.
The informative aid, aimed at introducer contacts, includes a case study of one individual who was helped by her parents post-divorce. Being unable to raise the funds to secure a mortgage on her own for a new property or to buy-out the husband, her parents were able to unlock the equity in their own home through equity release in order to help keep their daughter and grandchildren in the house.
Bridgewater’s ‘Just a thought...’ sales aids are designed to be used by advisers with their introducer contacts to help them understand the potential uses of equity release in a variety of situations and circumstances.
Chris Prior, manager, sales and distribution at Bridgewater Equity Release, said: “It is often quoted that one in three marriages in the UK end in divorce however according to the latest marriage, divorce and mortality statistics for 2010 it’s estimated that 42% end in such a split.
“Divorce is not a comfortable experience for anyone, least of all couples who have children and are faced with difficult decisions around access, maintenance and living arrangements.
“Given that most couples’ only major asset is likely to be their family home there are often highly tricky negotiations and decisions to be made about what to do with the property.
“Many will be able to go down the traditional remortgage route however this is not always possible particularly for younger couples who many not have enough income, may not be working, or simply can’t make the numbers work to buy-out one partner.
“This is where, with the help of parents, equity release could provide a solution and it is important that introducers are aware of the potential to use equity release in this situation.
“ This ‘Just a thought...’ gives advisers an informative sales aid to offer their introducers and provides a timely reminder of the advisory services they can offer to ensure that family life is disrupted as little as possible by what is often a particularly traumatic event.”
