Intermediaries play an important role in all stages of a client’s life but can be useful in times of great change.
Divorce is one of the biggest life changes that can bring a host of emotional and financial challenges. For those who live later, there are additional considerations.
Our research shows that recent divorce accounts for 17% of all divorces.1 For many, money tied up in bricks and mortar will likely play a very important role during and after the divorce process.
A shared home
It is not surprising that, across all age groups, the shared home is an asset that is considered as part of the divorce process; more than half (54%) of divorcees discussed it as part of their separation.
A shared home not only has financial value; it can also hold memories, a sense of belonging and emotional significance, adding another layer of complexity to what is already an emotional moment.
We know from our research that many late-life divorcees expect to downsize their homes as a result
Our research shows that, during the divorce process, some people turn to late-life mortgage solutions, such as equity release, to buy out their former partner and stay in the home they’ve grown to know and love.
While the separation process can bring a sense of flux, some may want to adjust and settle into the place they call home.
Low income
The impact of a late life divorce extends into retirement. Our research found that a quarter (23%) of divorcees aged 50 and over expect to live on less money in retirement than originally planned.
For those who have divorced in recent years and are still homeowners, drawing on real estate can help them fund their retirement, especially if their ability to save for their retirement has been affected by their divorce.
A compact home holds not only monetary value but also memories
For example, releasing the equity in their home can provide an effective way to bolster their retirement income
Lowering
Equally, while equity withdrawals can be a good option for some divorcees, downsizing can give late-life divorcees the extra retirement income they need.
We know from our research that many (32%) who divorce later expect to downsize their home as a result.
Empowering advisors and brokers
Since recent divorces make up such a large portion of total divorces, real estate brokers and advisors are likely to have clients dealing with such situations.
Advisors, with their expertise and strong rapport, are key to guiding clients in vulnerable situations to secure the best possible retirement outcomes.
More than 700 counselors have already visited L&G’s dedicated post-divorce services since we launched our latest research earlier this year. And now we offer a dedicated webinar on how to better support clients throughout the divorce process and beyond.
The impact of a late life divorce extends into retirement
It is a combination of technology, emotional intelligence, and readily available tools and resources that empower counselors to be the mainstays of support for those who are divorcing later in life.
As we continue to live longer, our needs may change accordingly.
Intermediaries are well positioned to be an ongoing source of support for their clients, ensuring that their near-term, mid-term and retirement prospects are better secured.
1The Opinium study conducted online interviews with 2,750 divorced UK adults, 471 of whom divorced after 49 years.
Cecilia Furner is distribution director for retail retire at L&G
This article appeared in the May 2026 issue of Mortgage Strategy.
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