Reverse Mortgages Can Help Seniors During Divorce
“…the increased occurrence of “gray divorce” […] has been identified as a significant 21st century divorce trend…even though the overall divorce rate is actually declining, it’s on the rise among older generations,” begins an article in Forbes magazine.
In truth, the rise of gray divorce presents its own set of problems for both women and men of a certain age who have been dependent on another person for the better parts of their life. It’s not to say that seniors who divorce later in life cannot fend for themselves, but it does present certain challenges that newer generations may not have to contend with if they get divorced.
Consider the breadwinner/housewife scenario as outdated as it may seem.
A husband, who has been dependent on his wife to do the house cleaning, cooking, errands, etc., may have a hard time adjusting to living by themselves. A wife, who ha not prepared herself professionally, might have a hard time sustaining herself after a divorce.
Forbes, however, has a potential solution for the grey divorce phenomenon: a reverse mortgage.
While this is contingent on whether or not you keep the house after the divorce, a reverse mortgage can be a viable option for divorced seniors.
For the husband, the reverse mortgage can offer them and additional source of income for the proverbial “rainy day.” In addition, it can provide a substantial cash flow boost that may be used to pay for home repairs and any future long-term health-care adjustments.
For the wife, the same benefits apply. However, according to Forbes, a reverse mortgage may also represent a “new strategy for making their settlements last as much as possible.” In a sense, a reverse mortgage will provide enough cash flow so that divorced women do not have to sell their depressed investments to cover expenses while they wait for their investments to rebound.
Sensibly used reverse mortgages can provide enough income for both the breadwinner and the housewife, without breaking the bank. As the reverse mortgage program in the new reverse mortgage, seniors going through a “gray divorce” should brush up on the reverse mortgages well. It may be just the answer they’ve been searching for.