In my previous post, I mentioned how much more frequent it is for people over age 65 to divorce. In spite of the national average being down, older Americans are divorcing at a much higher rate than they did in the past.
It’s difficult and painful enough to go through any divorce, regardless of your age, but I can’t imagine how much more complicated and painful it can be when you have been married for many years. Depending on the property agreement between the parties and if anyone is going to remain in the home, funds from a Reverse loan can be used to buy out the other party.
Here is the remainder of the article by Anita Gumm, Esq. about “Premarital Bliss”. See my previous post for the first part of it.
“Also, a party may want to preserve his or her estate for his or her heirs, free of the other party’s inheritance claims. Premarital agreements may validly provide that the earning and accumulations of each party’s separate property, free of any claims, community property or otherwise, of the other party.
Agreements fixing or saving child support are invalid. However, spousal support may be waived or fixed in an agreement so long as the agreement is ‘fair and equitable’. The parties may determine ownership rights and disposition of death benefits from a life insurance policy in an agreement along with their property rights.
Each party must fully disclose all of their assets and debts in the agreement otherwise a court could find the premarital agreement unenforceable.”
Although the national average for divorce has come down over the years, it has actually increased in seniors. Sometimes it’s referred to as Gray Divorce in the obvious reference to “older” adults.
It seems unimaginable that after being married for many, may years, sometimes for 50 years or more, that anyone would get a divorce at that time in their life. But it is occurring more often than you would think it would.
When it comes to the property settlement and if it’s agreed that one of the individuals will buy out the other and remain in the home, they can use a Reverse loan to accomplish the refinance and not have to worry about qualifying for a traditional loan using their income and credit or be burdened with a mortgage payment when they are most likely on a fixed income.
I recently met with Anita Gumm, Esq. a Divorce attorney for many years and we discussed this unusual situation and “late in life” divorces. She provided me with an article that she wrote which I share in this post.
Anita Gumm, Esq.
” A ‘premarital’ ( or ‘antenupial’) agreement is a contract executed between prospective spouses in contemplation of marriage, fixing marital property rights and financial responsibilities upon consummation of the marriage.
The motivation in executing a premarital agreement is typically intended to foster or perpetuate conditions which will help preserve a forthcoming marriage. Premarital agreements are favored by the courts provided they are freely entered into by the parties with no deception, duress or undue influence.
The parties intent in executing a premarital agreement is to avoid or alter the applicability of community property law to assets already owned by each party and to property and income to be acquired during the marriage.”
I will publish the remainder of her article in a following post.