2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894
In the fourth year of a second marriage that unfortunately is not going to work out, you are in the process of exploring your legal and personal options prior to filing for divorce. One definite is that you plan to remain in your home, which is titled in your name alone, a fact agreed upon prior to your marriage, and as per the agreement, you have continued to be responsible for all mortgage payments. Still, it is the ongoing upkeep expenses of the home that have become one of the main sources of disagreement between the two of you.
Despite the financial discord that has tainted your marriage, you realize that as part of a couple, you have been able to afford certain lifestyle luxuries that might be out of your reach once you’re on your own again. You’re hardly without means, having both a monthly pension and a regular distribution from of your investment account. However, having moved almost directly from widowhood into this second marriage, you worry about managing financially on
your own (actually, for the first time in your life).
Tapping into the equity in your home in the form of a reverse mortgage might provide the answer to some of your questions. Yes, you’ll still need to pay real estate taxes, insurance, and cover all maintenance costs (with no help from a spouse), but you’ll be relieved of the mandatory monthly mortgage payments. Set up as a line of credit and the reverse mortgage will allow you to make tax-free withdrawals for some of those lifestyle “extras”. Once you’ve
regained a sense of financial control, you may find you wish to make some reverse mortgage loan repayments after all.
Drawing on your own housing wealth might be the secret to regaining the financial ‘control” you crave, without the need to rely on a partner for help with upkeep expenses and lifestyle luxuries.
**This is not legal advice and should not be construed as such. Please consult a legal and/or tax professional.