As the number of divorces of couples age 50-plus hits record highs, new areas of the law are being uncovered to help one or more of the divorcees recover. That's because at an advanced age, they don't have the amount of time younger divorcing couples do to reenter the job force or recoup their lost retirement savings. That's why reverse mortgages are a very hot topic on the mouths of a lot of divorce lawyers.
Reverse mortgages are a type of loan where instead of making payments to a lender, the homeowner actually receives monthly payments, increasing the amount she owes. Or, they might opt to receive a lump sum, or maintain a ready line of credit. The loan and interest come due when the homeowner dies, moves out, sells the home, or if property taxes or insurance premiums go unpaid. Typically, the home is sold to repay the loan.
This is a particularly attractive option for those looking to weather a downturn in investment portfolios, or trying to decide whether or not to keep a house post-divorce. Obviously, the decision to keep a house also includes considering equity and potential, resale value on one side, maintenance and repair costs, property taxes and insurance premiums.
For women in this group of divorcees, this is an even more TK topic. That's because they're usually the ones who receive settlements and are looking for ways to extend that windfall. A reverse mortgage on the house can be the answer to that question many 50-plus divorced women are asking themselves: how do I solidify my future outlook?
How Reverse Mortgages Can Benefit Older Divorcing Women (Forbes)