While the overall divorce rate is going down, the “late-in-life” divorce rate is on the rise. In fact, the so-called “grey and silver” divorce rate is the fastest growing segment in America.
But what makes senior divorce more complicated is the division of assets accumulated over many years of marriage. The disposition of what is likely their largest asset – the family home - can prove particularly difficult. But, with some creative thinking – and a reverse mortgage – divorcing senior homeowners can arrive at a settlement that benefits both sides.
If the divorcing couple owns their home free and clear, one of the partners can keep the home and buy out their spouse with a reverse mortgage. The departing spouse can then use that money to make a large down payment on their next home… and can also finance it with a reverse mortgage.
By using a reverse mortgage in this way, both parties end up with no PI mortgage payment. Divorcing late in life can be challenging, but a reverse mortgage can help give both partners a fresh start.
To find out more about this reverse mortgage strategy, call us today.
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