Post-Divorce Lawyer Rockville MD
It has been well documented that while divorce rates overall are declining in Maryland and across the nation, divorce rates among older generations are steadily rising. The rate of people over 50 getting divorced has doubled since the 1990s. When couples over 50 years of age divorce, it is known as ‘grey divorce’. These divorces bring a unique set of challenges to family law attorneys. Many, for example, have different financial assets and holdings than their younger equivalents. It is also not uncommon for there to be financial issues even after the divorce process has been completed. A post-divorce lawyer Rockville MD clients recommend can help in these cases.
Gray Divorce and Financial Hardships
People who go through a gray divorce often experience a major financial shock. In fact, statistics show that a person who divorces after the age of 50 often suffers a drop in their finances by 50 percent. Women, in particular, are hit hard. Their standard of living drops by 45 percent. That is double the decline that younger women who divorce suffer.
As one of our divorce lawyers Rockville MD families trust can explain, one option that may be available to people caught in this financial situation is a ‘reverse mortgage.’ A reverse mortgage can be a useful financial instrument for retirees in need of extra income. A reverse mortgage is a type of loan in which a homeowner receives payments from a lender, increasing the amount of money he or she owes on a mortgage. The homeowner can receive the money all at once, over a period of time, or maintain a line of credit. The loan then becomes due when the homeowner dies, sells the home, or if property taxes go unpaid. The home is then sold to repay the loan.
In Maryland, to be eligible for a reverse mortgage, a borrower must be 62 or older, own the home outright (or have a low loan balance), and have no other liens against the home. A borrower continues to be responsible for property taxes, homeowners insurance, and upkeep of the home; failure to do so can result in foreclosure. While funds taken from these loans are normally used to pay for home repairs or medical bills, borrowing costs for reverse mortgages have significantly decreased, and they are now used as basic financial tools rather than simply last-resort methods of emergency cash flow.
For divorcees over 62 years old, particularly women who have been out of the workforce for a prolonged period of time, reverse mortgages could add an additional wrinkle of strategy when determining how to make your divorce settlement last as long as possible. If you are recently divorced, you might be able to use a reverse mortgage to provide income during retirement or help you avoid having to sell your home during a temporary depression in the housing market.
Call Our Firm Today
In many situations, issues following a divorce can come up that should be addressed by the court. If you are a financial or other issue you think falls in this category, contact a Rockville MD post-divorce lawyer from the Law Office of Daniel Wright to find out how we can help.