California residents have likely heard that half of all marriages end in divorce, but the reason the rate could be so high is because of one age group in particular. It has stabilized or gone down in many areas, but older couples see an increase in divorces.
Researchers have found that twice as many people who were 50 and older got divorced in 2014 than in 1990. Older couples who seek a divorce often shared a life together for many years, and reasons that they part ways could include financial issues, boredom and small problems that have become larger with time.
Keeping a home could be difficult after older people divorce as each person might have less money as retirement accounts may be split while one person could lose health insurance. Divorce mortgages might be coming soon to cater to these divorces. A divorce mortgage would allow someone who now has less money to stay in his or her home after dissolving a marriage.
In this type of a loan, the person who stays in the family home could borrow money to buy out the other party. This person might also be given more money so that it could be put in a savings account to pay off interest on the loan, which would be repaid either when the house was sold or when the loan was refinanced.
These vehicles are being considered by lenders in England, and they may appear in the United States at some point. In the interim, an attorney representing a homeowner who is going through a divorce may want to point out the financial difficulties that may be attendant to seeking to remain in the residence.