What does a divorce late in life mean for your home?

Divorce after the age of 50, also known as a “gray divorce,” has doubled since the 1990s. For those 65 and older, the divorce rate has tripled. So, if you’re taking action to leave an unhappy union, you’re not alone. 

Late life divorce, or gray divorce, comes with its graces and its challenges. While child custody and child support disagreements are rarely an issue since most would already have adult children by then, the separation of finances can be particularly formidable after a long marriage.

Division of Finances

After a long term marriage and years of sharing finances, it can be challenging to determine a fair distribution of assets that will allow both parties to thrive. Income that previously supported one household will have to stretch to two. 

While a financially dependent spouse may worry about their source of funds, financially supporting spouses might stress about covering alimony. It’s also more challenging to start a career late in life to make up for losses, and, if you’re already in retirement, you could be limited to a fixed income. It’s important to be strategic about your retirement plan and division of assets to ensure the financial stability necessary to overcome these obstacles and live a happy life after late life divorce. 

Your Home

Of all the marital assets (assets owned by both parties), your home is usually the largest. Not only does it hold a significant portion of shared wealth, it’s often filled with memories and familiar comforts. With so much financial and sentimental value at stake, how do you divide a home? 

There are several existing options for splitting your home’s value:

Sell the House and Leave

• One spouse can stay at the home until a set date by which the home must be sold and the profits divided.
• You and your spouse can sell the house immediately and divide the assets. 
  

Keep the House and Stay

• One spouse can buy the other spouse’s share of the home.
• If one spouse keeps the house, the other can be awarded equivalent marital assets to offset the home value.
  

But what if...

One spouse wants to stay but doesn’t have either: 

• The funds to buy the other spouse's share or 
• Sufficient marital assets to offset the home value?
  

If this applies to you, Truehold’s sale-leaseback is another option for you to consider. 

Sell the House and Stay

Truehold’s sale-leaseback program consists of two simple transactions: a house sale and a lease agreement. By selling your home to Truehold, you’ll receive all of your home’s value in cash without having to worry about all the costs and stressors that come with a traditional home sale. That cash can then be divided cleanly between each spouse.

The spouse who wishes to stay then pays a monthly rent and remains in their home as long as they like as a renter —whether that be a year, twenty years, or even just a few months. Rent also covers maintenance, taxes, and insurance, so you won’t have to worry about those additional expenses while planning for your future. 

With Truehold’s sale-leaseback, you can easily divide your home’s value and avoid tense negotiations with your spouse. By doing so, you also unlock cash from your home equity that can help ease the other financial stressors that come with divorce, all while keeping the stability and comfort of living at home. 

A survey conducted by the AARP found that 76% of people who got a later life divorce felt they made the right choice. Truehold’s sale-leaseback can simplify the divorce process so you can move towards that happy life. 

If you’re going through a divorce and trying to figure out how you or your spouse can stay in your home, give us a call at (314) 353-9757, and one of our advisors can help determine if Truehold is the best option for you.