Virginia couples might not realize that gray divorces are on the rise. While the overall divorce rate decreases or at least gains stability, older couples are the one group for which it increases. According to researchers from Bowling Green State University, twice as many people aged 50 and older were divorcing in 2014 compared to 1990.
Some reasons for divorcing later in life include boredom, a buildup of small gripes and financial issues. Most of these couples split up after long-term marriages and do not have the money to remain in their condos or homes following divorce. This is why a new financial product called a divorce mortgage is emerging.
The Telegraph reports that lenders are rumored to be discussing it as a potential option in Great Britain. Divorce mortgages would allow people who stay in their marital home to borrow enough to buy out their ex-spouses. The lenders would also allow them to borrow extra to put into a savings account and use to pay for the interest on their loans. When the interest is paid, they could take on full mortgages, repay the lenders using equity from their properties or sell their properties, depending on their circumstances at the time.
It is very likely that older divorcing couples will face tough financial decisions, whether or not they had financial issues during marriage. In the United States, retirement accounts are often divided in half and one of the spouses may lose health insurance. Additionally, data shows that divorcing women older than 62 have smaller benefits from Social Security than the average single man and woman. This is why financial experts believe that divorce mortgages might be very helpful with the rising rate of gray divorce.
Older spouses who decide to divorce might need some financial guidance along the way. Some divorce attorneys utilize the services of accountants and financial advisers to help their clients.