P h i l l i p H . L a nd e
A B R , A S P , C D PE , C R S
4 S A L E B Y D IVO RC E Divorce & Real Estate August 2016
DID YOU KNOW? The Grey divorce is defined by the growing trend of high divorce rates among Baby Boomers. In 2009, 1/4 People over 50 divorced. In 1990, 1/10 People over 50 divorced.
The Rise of the Grey Divorce A study from Ohio’s Bowling Green State University shows that one quarter of all American divorces now involve someone 50 or over – more than double that of just 20 years ago. While those seeking late-life or ‘grey’ divorces, as they are sometimes called, tend to have a rosier outlook than their younger counterparts of life after the dissolution of a marriage, older divorces also face unique financial problems that others do not. Odds are accumulated assets, from real estate to retirement savings, are substantial and entwined, and impending retirement can make a favorable financial split particularly tricky.
According to a study from AARP, more than one in four of grey divorces fear not having enough money in their post-split lives, a fear that comes second only to loneliness. This is particularly true among women who were four times more likely than their male counterparts to be concerned with the negative effect of divorce on their finances.
IS A REVERSE MORTGAGE AN OPTION FOR YOUR GREY DIVORCE CLIENT?
Phillip H. Lande RE/MAX Legends Group/ Atlas Group Direct: 317.863.2356 plande@atlasrealty.com www.remax-atlasgroup.com
Not only may a Reverse Mortgage be a viable option for divorcing clients who want to remain in the marital home, it may be a wise financial planning decision as well. Taking a reverse mortgage can also have implications on the tax bill, and for configuring potential Social Security income. You may be able to limit the income tax exposure by using cash flow from a reverse mortgage, rather than taxable withdrawals from a 401(k) or other retirement investment to pay off a traditional mortgage or other debts. If you can delay taking Social Security by using a reverse mortgage as a source of income, you can increase the monthly payment you will eventually receive.