Once thought of as something done mainly in middle age, divorcecan happen at any stage of life. The divorce rate for older Americans is becoming more and more common. When older people in New Jersey divorce, though, there are issues and concerns that are specific for their generation. One of those concerns is what to do with the house and whether the residence is still affordable after a breakup.
For those who are going through a divorce as an older woman, there are unique challenges to their financial situations. One helpful financial tool available for those over the age of 62 is a reverse mortgage. A reverse mortgage is a loan that allows seniors to access the equity in their home. The senior can receive monthly payments, a lump sum or maintain a line of credit. The loan and its interest come due when the owner dies, sells, moves out or doesn’t pay property taxes or insurance.
For those seniors who are going through a divorce, a reverse mortgage can help them stay in their house. For those whose divorce is finalized, a reverse mortgage can offer new cash income instead of cashing out investments that may be temporarily depressed.
Seniors who are going through a divorce have unique circumstances as compared to younger couples. A reverse mortgage can help provide cash income to help some seniors stay in their homes and avoid having to cash out valuable investments. A legal professional skilled in family law can help seniors going through a divorce navigate their many legal options when it comes to property division. Seniors who are well-informed about their options can feel secure in their financial decisions and other divorce legal issues.
Source: Forbes, “How reverse mortgages can benefit older divorcing women,” Jeff Landers, Sept. 24, 2013
