Family member divorcing, best way to fund a new property

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Peanuts20

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Family member is in the process of going through a divorce, 62, part time job, no kids. Husband retires in December at 65. House is in joint names, no mortgage. Family member wants to move out.

Assuming he agrees to give up 50% of his share of the property, what is the best way for him to "buy" the wife out, allow her to move out and purchase her own place. (there will be other funds as well such as tax free pension lump sum and shares). Should/Could he take out an equity release mortgage and does that then have any potential implications when the wife buys her own place.

Are there any "gotchas" that both need to consider?
 
Best to go mortgage / financial advisor for the mortgage advice and their solicitor would walk them through any legal consideration. But Spry Finance would appear to be an option.
 
Peanuts20 said:
Assuming he agrees to give up 50% of his share of the property, what is the best way for him to "buy" the wife out, allow her to move out and purchase her own place. (there will be other funds as well such as tax free pension lump sum and shares). Should/Could he take out an equity release mortgage and does that then have any potential implications when the wife buys her own place.
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I don't think that Spry will lend 50% of the value of the property.

How Much Can I Borrow on a Lifetime Loan - Spry Finance

How much can I borrow? You can borrow a minimum of €20,000 and maximum of €500,000 from Spry Finance depending on your property value and age
www.spryfinance.ie www.spryfinance.ie
table-maximum-loan-amount.png
 
The married couple have some joint assets that can be used for both of them to fund new homes.

The value of the family home
Their current incomes and savings
Their respective pensions and potential lump sums.

Assuming they plan to split assets 50:50 if the husband wishes to remain in the family home after the divorce then he will need to give 50% of the value to the wife. Will there be this amount in cash in their joint savings and pension pots?

They may need to consider his pension pot options (assuming this is the biggest non house asset). There may be options to take a larger lump sum for a smaller annual pension that may or may not suit the release of enough capital to allow the wife purchase a new home. But time is ticking if he will be 65 in December and drawing down his pension then, actuarial valuations of pensions for pension adjustment orders take time etc.

As @ClubMan says getting your lawyers advice is vital.
 
Is the original home now suitable for the staying partner ie is it too large, does it have longevity into old age etc? Selling and buying two new properties might work out as the best option.
 
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