Financing two different dwellings
Each spouse will have to deal with a new, possibly reduced standard of living. This may happen even if each person has enough for their own residence. While two can survive almost as frugally as one, two dwellings means double the expenses for property taxes, maintenance, utilities, and other basic costs. The divorcing couple has reduced assets and resources available should one of the spouses need to purchase their own residence. Income in a gray divorce is typically static, and wealth is often tied up in the marital residence which may be sold or kept and maintained by only spouse. Even if the marital residence has equity, the equity may not be readily available to give and use for the purchase of a second home. A reverse mortgage might be a solution, but taking that road is a major decision and has special qualifications including a minimum age requirement of 62. This process can also become complicated and drawn out as a likely feuding couple with no intention of staying together is forced to make a joint decision.
If selling, refinancing or reverse mortgaging the house is not an option, the couple may decide to both vacate the property and list it for rent. This option comes with its own considerations. Aside from the typical responsibilities assumed as the role of landlord, the couple has to determine how the net proceeds will be divided and who is responsible for making necessary repairs as normal wear and tear from tenants occurs. Should one spouse decide to keep the house in the divorce, that spouse may not be able to take possession of the home until the tenant’s lease expires or is terminated.
As always, the family law attorneys at Brandon Legal Group are here to assist you. If you are facing issues around your “gray divorce”, or any other divorce or custody issue, please, get in touch. You can Chat using the chat box on the lower right hand corner of this window, or you can email – the address is in the upper right corner. Or call at (813) 902-3576. Or head over to our contact page, and reach out to us. However you contact us, ultimately, we need to meet electronically, or in person. Your initial consultation is always free.