The rise in divorce among elderly Americans may affect the options Virginia residents have when it comes to ending a marriage. “Gray” divorces refer to divorces between older couples, typically after a long-term marriage. One Bowling Green State University study found that twice as many people age 50 and over divorced in 2014 as in 1990.
The dissolution of long-term marriages has created demand for a new type of mortgage, known as a “divorce mortgage.” Divorce mortgages could provide more options for older homeowners who do not have the finances to remain in their homes after a divorce. Lenders in Great Britain have announced consideration of a type of mortgage that would allow one person to remain in a jointly owned home. The mortgage would allow the individual to borrow money in order to buy the other spouse out of his or her share.
In a divorce mortgage, the bank lends the money needed to buy the former spouse out of the property. An extra portion of the loan is placed into a savings account and used to pay the interest on the loan over time. At the end of a given period, the buyer can repay the lender or take on responsibility for the full mortgage.
While divorce mortgages may provide more options for divorcing homeowners in the future, a family law attorney may be able to help a divorcing person manage his or her options in the present. Even someone planning an uncontested divorce can benefit from legal counsel. Attorneys may be able to help their clients with the preparation and submission to the court of a comprehensive settlement agreement.