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#219: Using reverse mortgage funding to satisfy a divorce decree

FAIR-AND-SQUARE DIVORCE DIVVY-UP USING REVERSE MORTGAGE FUNDING

If there is such a thing as an amicable divorce, that’s what the two of you are trying to accomplish. The one item about which there has been no dispute is the occupancy of your home – while your will be continuing to live in Indiana, your soon-to-be ex-wife is relocating to be near her nieces and nephews in Virginia. 

The greatest portion of your assets outside of the home itself is in your respective retirement plans, but there is also a jointly held stock and mutual fund/ETF portfolio, which can be easily split “down the middle”, as your financial advisor has assured you. The only issue is that, in order for her to agree to cede total ownership of the house to you, you would need to part with the largest part of the non-pension investments. Given that you have been the one primarily involved in selecting and monitoring the portfolio over the past several decades, you find that a rather repugnant prospect. 

There’s an alternative to consider. Since it has apparently been agreed that you will be the one continuing to live in the home, your “housing wealth” might prove to be a better source of funding the divorce settlement. Using a reverse mortgage loan based on the equity built up in the home, the proceeds can be used to satisfy your divorce settlement obligation, avoiding the need to liquidate portfolio investments. Post-divorce, with no obligation to make monthly mortgage payments,* you will be under no pressure to liquidate investments.

With you remaining at home, experienced at managing the investments, your ex-wife will have the cash needed for the relocation. In a way, the housing wealth you’ve created while together can help each of you transition into your new, separate futures.  

https://mutualreverse.com/david-garrison

Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).

*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender