keeping the house during a divorce
Seniors Are Divorcing
Divorce is always an emotional and difficult experience regardless of the reason or the age of the two individuals who are experiencing this wrenching event in their lives.
Overall the national average of divorcing couples has declined over the years but what is odd, is that it has tripled for those couples over the age of 65 since the 1990’s.
The reasons for senior or “gray’ divorce vary but some of the more common ones is that after raising their children for many years, they began to see themselves as simply parents and no longer friends or lovers.
Then when the adult children leave the home and start their own lives, an older couple may discover that they no longer have any shared interests as they have grown apart over this period of time.
The financial implications of a “gray’ divorce can be quite complicated in that any assets and or retirement funds could end up being liquidated with disastrous consequences for the couple and their future financial stability and security.
I am not a financial advisor and certainly not a Divorce attorney and not qualified to provide any guidance in this matter and it’s best for couples to always seek professional advice when it comes to something as serious as a divorce and splitting up their assets.
However if there is equity in the home, it may be adequate enough to utilize a Reverse mortgage as a tool to either give half of it to one of the divorcing party’s and or buy them out in exchange for the other party receiving any investments they may have accrued together.
But a property settlement would have to be created by their mutual Divorce attorneys to make a final determination as to how all assets are to be divided.
So how would that work?
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.”