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According to a study by Bowling Green State University, the share of marriages that end in divorce after age 45 has increased significantly since 1990. While these splits, sometimes called “gray divorces,” made up only 20% of American disunions by the close of the ‘80s, these days people who split up at age 46 or older represent more than a third of all divorcees.  

With these demographic changes, it is increasingly common to meet freshly divorced retirees or others who divorce after middle age. It’s common at this moment to be concerned that you don’t have the means or time it takes to build your lifetime wealth back up following a gray divorce. Fortunately, there are new and helpful financial options to assist you in achieving financial stability.  


How Can I Achieve Financial Security Following a Gray, Grey, or Silver Divorce? 

When considering a separation at any age, it’s a good idea to meet with a financial planner or other trusted expert and make a plan for how you will handle your finances, both during and after a gray divorce. Who will be responsible for paying your car bill? Will you keep directly depositing your paycheck into your joint checking account? What is the rent obligation for the new apartment? Where possible, it’s good to collaborate with your spouse on this step– it is easier to separate bank accounts, responsibility for bills, and so on if both parties willingly work together towards an orderly separation.  

Even if you’ve spent your whole life paying into Social Security, it’s natural to worry about how you will fund your lifestyle or leave something behind for your family years when you go into retirement. As households with two working adults become more common, it’s easy to become used to the extra security that two incomes can provide. Even if you receive alimony, depending on your credit score you might not qualify for the same credit cards you used to. 


How The Federal Savings Bank Can Help 

That’s where a home loan like a reverse mortgage from The Federal Savings Bank comes in. These second-lien loans, sometimes called “home equity conversion mortgages” or HECMs, are designed to help qualifying homeowners over the age of 62 get access to the funds they need, quickly and with no monthly payments. Speak with a loan officer, call us now at 1-877-788-3520 to discuss how a HECM can help you, or get your application started today! 


Eligibility requirements apply. HECM Counseling is required. Subject to credit and income approval. You must occupy the residence as your primary home. You must continue to pay for property taxes, insurance payments, homeowners association fee, home maintenance costs, and other fees as required. You must have significant cash available for the down payment. The balance of the loan grows over time and interest is charged on the balance. The loan becomes payable when the last borrower on eligible non-borrowing spouse passes away, sells the home, permanently moves out, defaults on taxes, insurance, or maintenance, or otherwise does not comply with the loan terms. 

This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional. 

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.