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New mortage type may help Texas residents keep their homes

From 1990 to 2014, the number of people 50 years of age and older seeking a divorce doubled, according to a study done by Bowling Green University. This goes against the general trend that has seen divorce rates either stay where they are or go down. However, the fact that so many older people are getting divorced has led to discussions about a new type of mortgage product.

While it may be widely adopted in the United States, the product known as the divorce mortgage is only a hypothetical at this point. It is under discussion by lenders in the United Kingdom, however. It is expected that the divorce mortgage will be available by the end of 2016 if all goes well. The process of getting a divorce mortgage starts by allowing a couple to decide who keeps the marital home.

Then, a lender provides enough money for the person who keeps the home to buy the other party out. Additional money is provided to cover interest on the loan, and it is put into a bank account. After a predetermined amount of time, the owner of the home can either sell the home or use equity to repay the lender.

Before starting the divorce process, it may be worthwhile to consult with an attorney. Legal counsel may be helpful in establishing whether property is marital property or sole property. This may determine what each party is entitled to when the marriage is dissolved. In some cases, a divorce may be resolved through mediation as opposed to litigation, which may be less stressful and preserve relationships after the marriage is officially dissolved.

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