Margaret Gettle Washburn, P.C.
(770) 676-1191
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Lenders considering new product for divorced people

In Georgia and around the country, divorces among people age 50 and older have been on the rise. Research from Bowling Green State University identified this trend. Data indicated that the number of people in that age group divorcing doubled between 1990 and 2014. The financial industry has taken notice, and is has been contemplating a financial product that could offer solutions when older homeowners end their marriage.

The so-called divorce mortgage would see a bank loan the person who was staying in the home the money to buy the ex-spouse's share of the equity. This could enable the person to stay in a home instead of selling it.

In Great Britain, the media has reported that financial industry representatives have discussed how the divorce mortgages might work. The product might include within the loan amount a portion that would be set aside in a special account. Those funds would pay the interest on the loan for a specific period of time. At some point, the person could sell the home to pay off the loan or alternatively obtain a new mortgage.

When an older couple divorces, many financial issues need to be sorted out through negotiations or in court. In addition to property division, the end of a long-term marriage often includes spousal support payments and the splitting of retirement accounts pursuant to a qualified domestic relations order. Having the services of a financial planner as well as those of a family law attorney can be advisable to a person who is seeing a lengthy marriage come to an end.

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Margaret Gettle Washburn, P.C.
4799 Sugarloaf Pkwy
Building J
Lawrenceville, GA 30044

Phone: 770-676-1191
Fax: 770-963-2828
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