Pennsylvania couples who split following many years of marriage might be interested to know about a proposed lending product called a divorce mortgage. News sources say that these mortgages allow divorcing couples to determine who stays in the home they formerly occupied together. The lender would then grant this individual the funds to buy their ex-spouse’s old share in the property. Such a system might also include special allowances for loan interest to make it easier for borrowers to repay, sell or buy their properties in full after a predetermined time period.
The concept of divorce mortgage lending is relatively novel. The development may have been partially prompted by increasing rates of people getting divorces later in life. Some university researchers observe that the number of individuals at or over the age of 50 who got divorced in 1990 was only half as large as in 2014. The same researchers also say that in divorcee populations over the age of 62, women are disproportionately impacted by poverty and low Social Security benefits.
Observers put forth a number of potential reasons for these so-called gray divorces, but most seem to agree that such events pose unique fiscal challenges. Alimony is more commonly awarded in divorce cases involving older individuals, and retirement accounts and health insurance may undergo significant modifications.
Filing for divorce is a major life-changing event. In addition to potentially having to consider reentering the workforce, people often face complex property division issues that could have a significant impact after the marriage ends. A family law attorney can often assist in negotiating a comprehensive settlement agreement that addresses these and other applicable issues.