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Falling house prices 'affects divorcees' assets'
Practice area: Family Law
Divorcees aged over 60 are finding themselves financially worse off as a result of the faltering housing market, experts have warned.
According to
equity release trade body SHIP, the
divorce rate among the over-60s has risen by almost half since 1981, with 13,678 getting divorced each year.
Many couples were said to be choosing to sell their property in order to divide the assets fairly between them.
However, SHIP stated that average house prices have dropped to £154,716 since August 2007, which means they would end up with a relatively small amount compared to two years ago.
This, it warned, could have "serious consequences" for a person's retirement income.
Andrea Rozario, director general of SHIP, has therefore urged divorcing couples to seek advice from a professional before making major financial decisions.
The advice coincides with the most recent house price survey from Halifax, which showed that average house prices in the UK during May 2009 were 2.6 per cent up on the previous month.
Despite the increase, the organisation said this does not represent a sustained recovery in the housing market and that "too much weight" should not be placed on any one month's figures.
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