One in five couples who have had to sell their house because of a divorce have ended up losing money on the property.
A new mortgage has been launched to help people in this situation as it allows homeowners to release up to 20% of their property value.
This extra money can then be used to purchase a new property for one partner, while the other can continue living in the home.
The equity mortgage
In 34% of divorces, at least one of the partners hasn't been able to buy another house making the process not only extremely stressful but also expensive.
The Castle Trust mortgage, known as a 'Partnership Mortgage', is available to people who have at least 40% of equity in their homes already. It releases 20% of the value – in the form of a 0% interest loan with no monthly repayments.
In return, when the mortgage is taken out there is an agreement formed that the borrower will share 40% of any increase in the value of the house with the provider when it's sold.
This starts from the day the mortgage is taken out, and if the value declines or doesn't change, borrowers will simply pay back the original amount when selling the house.
It is set with a term of up to 30 years and as it's not linked to the Bank of England base rate, there isn't a risk of the price changing.
In more than a third of divorces couples are left with adversely affected finances. One in three people are also worried that a divorce will affect their ability to be approved for a mortgage.
The idea behind the mortgage is to reduce the financial shock of a break-up by giving both partners an alternative option to selling their home at a loss.
"Divorce can be one of the most stressful life experiences, often made worse by financial problems which develop as a consequence," explains Sean Oldfield, Chief Executive Officer for Castle Trust.
10 top ways to add value to your home
Castle Trust launches a new mortgage for divorcing couples
Of course with all these things, the value it adds depends on the property you have to start with, and the kinds of improvements you make, but Which? estimates the cost of a new kitchen at £8,000 and HSBC calculates the added value to your property at £4,500 - which is a clear loss.
This has been done by 41% of people in the last three years, and 29% of people plan it in the next three. It's cheaper than a kitchen, and Which? estimates the cost at £3,000. This is roughly the same value that HSBC says it will add to your property - so you'll break-even.
It may be difficult, but getting your property ready for sale means depersonalising it.
Clutter can distract viewers and more than half (60%) of the property valuers who took part in the 2012 HSBC Home Improvement Survey said that the number one way to increase a property's chance of selling quickly, and for a good price, was to de-clutter.
This has been installed by 31% of us in the last three years, and 15% plan it in the next three. Installing central heating is a disruptive job, and according to WhatPrice it will cost you around £3,235. However, this is the first of the top ten to actually pay off. Property expert Phil Spencer says it will add £5,000 to the value.
A quick splash of paint can work wonders on tired-looking walls, and sticking to neutral tones is the safest bet.
Keeping the colour scheme simple, fresh and inviting will help potential buyers to see themselves living in your home.
Some 18% have added one in the last three years, and 30% will in the next three. This is another huge job, but with more people struggling to move and deciding to improve instead, it's increasingly popular. The amount it costs will depend on an enormous number of things, from the area you have to work with, to the size of the extension. However, assuming you add a single room you could spend around £20,000. HSBC estimates it will add around £15,500 to the value of the property, so you are unlikely to gain as much as you spend.
According to Halifax valuers, loft conversions - which require lofts with a roof height of at least 2.4 metres - are a good way to increase the potential sale price of your home.
Be sure to stick to your budget, though. The average loft conversion will cost between £10,000 and £30,000, while HSBC's figures show that they typically add £20,876 to the value of a property.
Putting in new windows adds around £5,265 to the value of the average property and can reap big rewards when it comes to energy efficiency.
It is, however, sensible to ensure that your new windows are in line with the style of your property to maximise the added value - particularly as putting them in can set you back about £5,000.
Off road parking or a garage can be especially advantageous in areas where parked cars line both sides on the street.
Nationwide's figures show that adding a garage, which can cost anything between £8,000 and £25,000, can increase the value of your property by 11%.
Outside space is just as important as inside - especially when people are seeing your home for the first time.
While 63% of the HSBC survey expert respondents said that repainting or varnishing a front door would make a difference, only 23% of homeowners recognised this. Peter Dockar at HSBC said: "It is often the smaller jobs like painting the front door that can make all the difference when looking for a sale."
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Going through a divorce is rarely straight forward and can end up costing thousands. Solicitors' rates are continually rising and most couples can't afford to buy the other out when selling a home.
Therefore they're left to sell a house and often make a loss, leaving both without enough money to buy a new place to live in.
Another option they have is offsetting a property against other assets – but again this may not be suitable for everyone. As is the case with most divorces, a house is the most valuable asset someone has and therefore there isn't anything else to offset this against.
Therefore this mortgage seems to be quite a good idea as it gives divorcees another option. Both will be given an injection of cash so they can keep the current property and have enough money to buy somewhere else.
However, the catch is if the house increases dramatically in value from the time the mortgage is taken out, the resulting profit will need to be split with the provider.
The vital lessons of celebrity divorce
Castle Trust launches a new mortgage for divorcing couples
Rupert and Anna Murdoch: $1.7billion (£901m)
Australian Murdoch and his former wife were married for 32 years and had three children together, before splitting in 1999. Around $1.7 billion of Murdoch's fortune went to Anna.
"The divorce rate is rising rapidly among the over-60s - up 58% in 2012 compared with 2011," explains Stowe. "According to reports at the time, Anna wanted her media tycoon husband to slow down – but like many people these days, Rupert didn't want to approach his sunset years sitting in an armchair. Over 60s want to enjoy themselves, making the most of what time they have left by doing what they love best."
Mel and Robyn Gibson: $425million (£273m)
Mel Gibson's 31-year marriage to Robyn felt apart when his mistress and soon-to-be second wife Oksana Grigorieva's pregnancy was made public. Robyn was entitled to half of his assets under California state law and the Lethal Weapon actor reportedly handed her half of his estimated $850 million fortune.
"Robyn's sizeable settlement included 50% of her movie star husband's pension rights," explains Stowe. "My male clients are often displeased to discover that financial negotiations extend to their pensions. They are also shocked to discover that, if the wife is younger than the husband, her claim to a share of the pension can potentially be greater than his because her life expectancy may be greater than his."
Roman and Irina Abramovich: $300 million (£193m)
Roman Abramovich reportedly finally agreed to divorce wife Irina when she could no longer put up with his roguish ways and he refused to give up his mistress. The £150 million payout could have been a lot more painful for the Chelsea FC owner - Irina sought 50% of his $12.1 billion fortune, which if successful would have been the largest divorce settlement of all time by a count of six.
"Most couples, whether or not they are in the public eye, prefer to avoid court and maintain their privacy," says Stowe. "Moreover court proceedings, which pit one party against the other in an adversarial environment, can be unpleasant and stressful. Although $300 million sounds like a lot, Irina Abramovich could have fought for a far greater share of the couple's fortune. By agreeing to settle for less, she was able to avoid an acrimonious court case – and all the public scrutiny that would have come with it."
Tiger Woods and Elin Nordegren: $110million (£70m)
Shamed by the sex scandal that wrecked their marriage, Swedish Nordgren got a reported $110 million settlement from her cheating ex, golf star Tiger Woods. When Nordegren finally ended nine months of silence over her heartbreak in August 2010, she said she "felt stupid" that Woods cheated on her with a parade of party girls and porn stars, and noted: "Money can't buy happiness. Or put my family back together."
"When the rich and famous divorce, the public want details: the juicier, the better," says Stowe. "However it is easy to get carried away by the sums and forget that, even for the most privileged among us, money is no balm for heartbreak."
Steven Spielberg and Amy Irving: $100million (£60m)
The couple, who first met when Irving tried out for the lead role in 1977's Close Encounters of the Third Kind, went onto marry in 1985. According to Celebritynetworth.com, when they divorced in 1989, Irving claimed their prenup was invalid because it was written on a napkin without any lawyers present. She successfully won a $100 million settlement.
"Don't assume that a prenuptial agreement isn't worth the paper it is written on: in England and Wales, pre-nups will certainly be considered by the court but are not yet automatically binding, " explains Stowe. "However a prenup is more likely to be upheld if it is consensual and voluntary, not signed in haste, not clearly out of date (providing for future children, for example), preferably including a review after a period of time, and properly drafted with full disclosure."
Madonna and Guy Ritchie: $76m-$92million (£48m-£59m)
When Madonna divorced director Guy Ritchie in 2008 after eight years of marriage, Ritchie was said to have walked away with between $76 to $92 million - almost a fifth of the singer's estimated $500 million net worth, plus a country house and a London pub.
"The settlement rumoured to have been received by Ritchie is thought to have been the largest divorce settlement ever paid to a man, showing that in 2013, it isn't always the wives who get the divorce settlements," explains Stowe. "In recent years I have encountered a number of successful female breadwinners who were bewildered to discover what they faced to lose if they divorced."
Sir Paul McCartney's and Heather Mills: estimated at $48.6million (£28million)
Following their divorce in 2006 Heather Mills was awarded £24.3m in the settlement decided by a court judge. According to the BBC, McCartney paid his estranged wife a £16.5m lump sum, including £2.5m to buy a London property, in addition to £7.8m assets and £35,000 a year for their daughter Beatrice. The settlement was blow for Mills who had sought some £125m of the former Beatle's £400m fortune.
"The demolition of family law legal aid, which provided help with legal costs, has led to a boom in people representing themselves in court," explains Stowe. "Heather Mills represented herself in the High Court – and discovered for herself the disadvantages of doing so.
"In the courtroom, there are no prisoners taken. You may think you are saving money by representing yourself or opting for a cheap DIY divorce online – but such decisions can turn out to be expensive in the long run if you settle for less than you are worth. "
Donald Trump and Ivana Trump; $25 million (£16m)
The Trumps 15-year marriage came to an end in 1992, with Ivana taking $25million in an out-of-court settlement, plus several properties. The couple's old Mercedes proved a major sticking point, which Ivana – who claimed Donald had given it to her as a gift – eventually won.
"I have often observed that clients who are knowledgeable and well-prepared, with a realistic outlook, are better equipped to cope with proceedings and move on with their lives afterwards," explains Stowe. "Ivana Trump has a refreshing attitude and since divorcing has gone on to enjoy considerable success of her own as a real estate developer and as the founder of Ivana Haute Couture, which sells her signature products, fragrances and accessories."
Lionel Richie and Diane Richie; estimated at $20 million (£12m)
Richie married Diane in 1995 and the couple had two children, before their marriage broke down in 2004. The Richie's became tabloid favourites, reports Forbes magazine, as Diane detailed their lavish lifestyle in her alimony petition. Among her claims: a monthly clothing allowance of $15,000; $50,000 a month for manicures, massages and other personal services; and a plastic surgery budget of $20,000 a year.
"Richie rubbished Diane's demand as "a lawyer giving some advice that's completely absurd", and insisted that despite the headlines, the couple still had a "great time" together," explains Stowe. "Perhaps he was right: the couple have remained on good terms and were spotted shoe-shopping together in 2011. It is difficult for a divorcing couple to stay friends, irrespective of the settlement size, but it can be done."
Mick Jagger and Jerry Hall; estimated between $15 and $25 million (£9.6m-£16m)
After nine years of marriage, Mick Jagger and Jerry Hall divorced with a $25 million settlement. According to Celebritynetworth.com, Jagger attempted to get out of any payment by claiming they had never really been married because their Balinese Hindu wedding ceremony was not legally binding.
"Their ceremony was invalid because under Balinese law, only Muslim marriages can be validly conducted," explains Stowe. "When a couple's marriage is not valid according to English law, it is still possible for one spouse to obtain a financial settlement – but only if the Petitioner spouse thought he or she had actually gone through a lawful marriage ceremony and acted as married thereafter. If you plan to marry overseas, however, do avoid Jerry Hall's plight by double-checking the law before you leave."