The Question
My wife and I have decided to part ways and are about to set divorce proceedings underway. We are in our 60s and we jointly own a three-bedroom house which has been valued at £425,000 and which is currently on the market for sale.
I recently considered whether equity release might be an option, though. Could I use it to release a share of the equity to ‘buy out’ my wife, thus retaining the home I’ve lived in for two decades and avoiding the stressful sales process?
Mark’s Answer
Thank you for your question and I can confirm that we help many customers who have decided to divorce, and one party wants to retain the marital home. Based on the basic information you have provided as you are in your 60s and your home is worth £425,000 you are likely to be eligible for equity release.
At this stage of your enquiry I would strongly recommend that you discuss your plans and options with one of our friendly, experienced advisers who can firstly assess your options to raise the capital you need, understand your current and future plans and then create a bespoke recommendation.
If it is possible for you to raise the capital you need to purchase your partner’s share of the home, your adviser will explain how this works.
However, I can confirm that firstly you and your partner would take independent legal advice and agree a settlement figure to purchase the share of the home and then you could use this figure to discuss your options with your equity release financial adviser.
Once they have assessed the best plan for you, if you are able to raise the capital you need, this can all be arranged through legal experts who will complete the conveyancing and remove your partner from the title of the home and provide them with the funds to complete the separation. As there are legal experts involved, this transaction will be completed with full agreement of both parties, and it can be done professionally and compassionately.
However, I would caveat that you and your partner are going through a traumatic event, and a divorce may leave you vulnerable to making a decision regarding your capital raising requirements that you may regret in the longer term.
It can also lead to more financial pressures – some we have highlighted in a previous equity release news article we covered on this subject in January 2025.
Therefore, taking advice from an understanding expert equity release adviser, who will ensure you are entirely comfortable with your short and long-term objectives is really important.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
