By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
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Divorce later in life can change everything — your plans, your savings, even your home.
You might want to keep the house you’ve lived in for years, but you may also need to pay your spouse their share of the equity.
The big question is:
Can you get a reverse mortgage while going through a divorce?
In many cases, the answer is yes. A reverse mortgage can help one spouse keep the home and buy out the other without taking on new debt or selling.
How a Reverse Mortgage Can Help in a Divorce
A reverse mortgage lets homeowners age 62 or older turn part of their home’s equity into cash. You don’t have to sell your home or make monthly payments.
In a divorce, that cash can be used to pay your spouse their share of the home’s value. You keep the house, and they get their part of the settlement.
But before the loan can close, the divorce must be finalized, and the home title must be in your name only.
Timing Matters: “Subject To” the Final Divorce Decree
You can start the reverse mortgage process while the divorce is still being worked out. The lender will approve the loan “subject to” the final divorce papers.
Once the court signs the decree and the title is updated to show who owns the home, the loan can close and the funds are released.
This approach makes sure:
- The right person is listed on the title
- The settlement matches the court’s decision
- The loan follows state property laws
A reverse mortgage professional can help you time everything correctly, so the process goes smoothly once the decree is final.
What Happens if Both Spouses Are on the Title
If both names are still on the deed, one of these steps needs to happen before closing:
- Quitclaim Deed: The spouse leaving the home signs over their rights.
- Divorce Decree or Settlement: The court order clearly gives the home to one spouse.
- Updated Title: The lender confirms only the borrowing spouse remains on the title.
Until this is complete, the reverse mortgage can’t close.
How Much Equity Do You Need?
Every situation is different, but most homeowners need at least 50–60% equity in the home to qualify.
If your home has about $100,000 in equity, you may still be eligible depending on your age, the home’s value, and current interest rates.
Some private (non-FHA) reverse mortgage programs allow higher loan-to-value ratios, which can help in tight situations.
Example: Using a Reverse Mortgage to Settle a Divorce
Imagine a couple owns a $400,000 home that’s paid off. As part of the divorce, one spouse wants to keep the house and must pay the other $150,000.
At age 66, that spouse qualifies for a reverse mortgage of about $200,000.
Here’s how it works:
- $150,000 goes to the other spouse as the buyout.
- The remaining $50,000 stays as a line of credit for home repairs or savings.
- No monthly mortgage payments are required.
Both people get what they need, and the homeowner can stay where they feel comfortable.
Are You Eligible for a Reverse Mortgage?
(Find out in 60 seconds)
State Laws and Property Rules
Every state has its own divorce and property laws. In some states, both spouses must sign off on new loans until the divorce is final. Others require proof of who owns the home before refinancing.
That’s why it’s important to:
- Work with a lender who understands divorce-related reverse mortgages
- Coordinate with your divorce attorney
- Make sure the home title is clear before closing
If You’ve Already Filed for Divorce
You don’t need to wait for the judge’s signature to start planning.
You can:
- Apply for pre-approval to see how much you could borrow.
- Share that estimate with your attorney during settlement talks.
- Close the loan once the divorce is finalized and the title is updated.
Planning early helps avoid delays and gives both sides clear numbers for the agreement.
Why a Reverse Mortgage Can Make Sense
Reverse mortgages offer loads of benefits…
- Lets one spouse keep the home
- Eliminates monthly mortgage payments
- Provides tax-free funds for the buyout or living costs
- Helps avoid dipping into savings or taking on new debt
- Offers stability during a major life change
FAQ: Divorce and Reverse Mortgages
Can both spouses be on the reverse mortgage?
No. Only the spouse who keeps the home and meets the age requirement can be on the loan.
Can I apply before the divorce is final?
Yes, but the loan won’t close until the court order and title are finalized.
What if my ex is younger than 62?
They’ll need to come off the title before closing.
Can I use the money to buy out my spouse?
Yes. Reverse mortgage funds can go straight to your spouse as part of the settlement.
Does divorce change how much I can borrow?
No. Loan amounts are based on age, home value, and rates — not marital status.
Thinking About Keeping Your Home After Divorce?
Divorce is never easy, but losing your home doesn’t have to be part of it.
If you’re 62 or older and want to stay in your home after a divorce, a reverse mortgage could make that possible.
Call us at 855-212-9114 or get an instant reverse mortgage quote today — it’s free and only takes a minute.
