On behalf of North Tampa Legal Group posted in property division on Thursday, February 22, 2018.
As gray divorces are on the rise, more individuals find themselves in need of a way to ensure housing after a marital breakup. During the property division portion of the divorce process, individuals may find themselves negotiating about how to handle the family home. An older person may have a more sentimental attachment to the family home but is facing a mortgage that he or she can no longer pay. Another person may want to leave the home but will face difficulty being approved for a mortgage. One expert has suggested that the reverse mortgage could be a possible solution — a point of view that may interest some individuals located in Florida.
If two older people are getting a divorce, and they own a home that is partially paid off, one possible solution is to sell the home, pay off the remaining housing debt and split the proceeds between them. This solution is a good fit for some but not all. In the case in which one person wishes to remain in the family home, and the other person needs to move, both parties could face a financial conundrum.
A potential solution is what has been called a “double reverse mortgage.” The person remaining in the home could be approved for a sum that will pay off the house and give a small amount for the other party to use as a down payment on another type of specialized mortgage. This could possibly allow both parties to move on without facing large mortgage payments, as long as they choose to remain in the respective homes.
Any potential property division solution should be researched carefully by the individual to ensure that he or she has a full understanding of the short- and long-term impacts of the choice. Finding appropriate housing after ending a marriage is an important concern. Some individuals in Florida choose to enter the divorce process with the outside help of an experienced attorney who can provide guidance and information as one moves through the steps of divorce.
Source: reversemortgagedaily.com, “Washington Post Explores the Reverse Mortgage as Divorce Solution“, Alex Spanko, Feb. 19, 2018