Although the overall divorce rate has declined in the last several years, it seems that it has increased in the older generation. And it’s been referred to as “grey divorce”. This certainly can have dicey financial implications when it’s done later in life when one is older, rather than when you are younger.
And a Reverse loan can be considered to make a difficult situation less so by using the funds to buy out the departing spouse and or extending retirement funds. Here is a brief synopsis of the article with a link the Forbes piece for the more lengthy one.
Forbes: Reverse Mortgages Can Help in Divorce
Posted By Jason Oliva On September 26, 2013 @ 6:26 pm In News,Retirement,Reverse Mortgage | 2 Comments
“As divorce becomes more common among older couples, reverse mortgages can be financially useful tools, especially for divorcing women, Forbes reports .
While the overall divorce rate has been declining, it is on the rise among older generations, with “grey divorce” identified as a significant 21st century trend.
For those divorcing at age 62 and older, reverse mortgages can represent a new strategy for making divorce settlements last as long as possible, writes Forbes, as they are becoming “basic financial management tools, rather than just last-resort methods to increase cash flow.”
An example the article suggests is using a reverse mortgage to provide cash funds during retirement could save divorced individuals from having to sell temporarily depressed investments.
Reverse mortgages can also delay drawing from Social Security and help pay off a traditional mortgage or other debts, rather than using taxable withdrawals from a 401(k) or other retirement investments.”