Banks mulling a new kind of mortgage for divorcees
The divorce rate in Florida and around the country has remained steady in recent years after surging in the 1970s and 80s, but divorces among couples at or over the age of 50 have continued to climb. A 2014 study from researchers at Bowling Green State University found that the number of people in that age group getting a divorce doubled between 1990 and 2014, and a similar trend in the United Kingdom has prompted British banks to consider introducing a new kind of mortgage to help older divorced people who wish to keep living in their former marital residences.
Older ex-spouses may be reluctant to sell their homes for either sentimental or practical reasons, but they often lack the funds necessary to buy out their former partners. The proposed divorce mortgages would not only provide this money, but they would also help spouses to cope financially as they adjust to their new lifestyles by putting funds aside to cover interest charges. Once they have their financial affairs in order, the borrowers could pay the loans off by applying for conventional mortgage financing or selling their homes.
These new loans have yet to be made available in England, but some legal and financial analysts believe that they would be extremely popular in the United States. Underwriting standards have become far stricter in the wake of the 2008 financial crisis, but divorce mortgages will generally have low loan to value ratios and many of the would-be borrowers will have a reliable source of income in the form of alimony.
When representing older clients in divorce cases, experienced family law attorneys may be particularly attentive during spousal support and property division discussions. A secure retirement and minimum upheaval are often the primary concerns in these cases, and attorneys may focus on assets and investments that provide income like retirement plans and high dividend stocks.