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Guide to Mortgages and Divorce

    CPD
    Approx.60min

    Introduction

    Splitting couples who fail to reach an agreement face the courts stepping in and deciding their financial fate for them.

    The two main options facing divorcing couples are to sell the property and split the proceeds as appropriate, or change the borrower names on the mortgage deeds if one of the couple intends to remain in the property as a sole occupant.

    This guide explores all the mortgage options facing couples going through a divorce, looks at the pros and cons of different approaches to dealing with the former marital home and what part financial advice plays in this process.

    Contributors to this guide are Tom Riley, head of product at Nationwide; Jeff Knight, director of propositions at Castle Trust; Ronan Marrion, mortgage adviser at Cornwall-based Worldwide Financial Planning; and Keith Churchouse, Chartered and Certified financial planner at Chapters Financial Limited and author of Addicted to Wedding Cake, Journey of Divorce.

    In this guide

    CPD
    Approx.60min

    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. What should the divorcing couple obtain before deciding what to do with the former marital home, according to Mr Riley?

    2. What typically happens to the former marital home where there are children involved, according to Mr Knight?

    3. Will a transfer of equity result in a capital gains tax bill, according to Mr Riley?

    4. Courts may still require a partner being bought out of their share of a property to service a mortgage until children reach 18 or finish full time

    5. If both parties continue to pay the existing mortgage what should happen to joint protection policies, according to Mr Riley?

    6. And what did Mr Riley suggest to ensure protection policies covering a mortgage for a divorcing couple are used for their intended purpose?

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