Yes. This is one of the most common uses of a reverse mortgage for couples 55+ going through a separation. The spouse who wants to stay in the home can use a reverse mortgage to access their home equity, pay out the departing spouse's share, and continue living in the home — with no monthly mortgage payments.

In this situation where one spouse is departing and being paid out a legally binding separation agreement is required, and the departing spouse must consent to come off title.

If both spouses are on title, both must be on the loan and both must be at least 55. If only one spouse is on title, only that spouse is the borrower.

However, in Ontario and most other provinces, the other spouse must still provide written consent before a reverse mortgage can be registered against the matrimonial home. 

This consent requirement exists regardless of whose name is on title, and reverse mortgage lenders will not proceed if the consenting spouse is under 55.

Your lawyer and broker can explain how this applies to your specific situation.

If you are using the reverse mortgage to buy out a departing spouse, yes — lenders require a legally binding separation agreement that outlines who keeps the home, the buyout amount, and the departing spouse's consent to come off title.

If you are both still living in the home and not formally separating, a separation agreement is not required. However, both spouses living in the home will need to be part of the loan process.

If both spouses are borrowers on the reverse mortgage and one moves out, the loan remains in good standing as long as at least one borrower continues to live in the home as their principal residence.

The loan does not become due until the last borrower permanently leaves, sells, or passes away.

However, the spouse who moved out should be aware that they lose certain protections — if the remaining spouse passes away, the loan becomes due and the departing spouse has no right to defer repayment.

If you are using the reverse mortgage proceeds to buy out your spouse, yes — the departing spouse will need to transfer their interest in the property as part of the separation agreement.

Your lawyer will handle the title transfer alongside the reverse mortgage closing.

In Ontario, this transfer between separating spouses can often be done without triggering land transfer tax, provided it is specified in the separation agreement.

In Canada, reverse mortgage lenders require all homeowners on title to be at least 55. If your spouse is on title and under 55, you would need to wait until they reach 55 to qualify.

Even if your spouse is not on title, provincial law in Ontario and most other provinces requires spousal consent before a reverse mortgage can be placed on the matrimonial home — and lenders will not proceed if the consenting spouse is under 55.

In some cases, private lenders or alternative solutions may be available with different terms and rates.

This is exactly the kind of situation where speaking with an independent broker matters, because I can assess all available options.

Reverse mortgage lenders do not routinely monitor your living arrangements after closing. However, your loan agreement requires that the property remain the principal residence of at least one borrower.

If both borrowers permanently leave the home, the loan becomes due.

If one spouse moves out but the other stays, the loan itself continues — but the departing spouse remains a borrower on the loan. This can affect their ability to borrow in the future, their legal obligations, and their estate.

The situation is not as simple as walking away, and there are important financial and legal considerations that both spouses should discuss with their lawyer and broker before making any decisions.

I always recommend formalizing any separation with a proper legal agreement to protect both parties — leaving things informal can cost you important protections down the road.

Absolutely — this is one of the strongest reasons to consider a reverse mortgage during a grey divorce. Instead of being forced to sell the home in a difficult market or at an emotional time, one spouse can use a reverse mortgage to buy out the other's equity share.

The remaining spouse keeps the home, makes no monthly mortgage payments, and maintains their independence.

The departing spouse receives a fair cash settlement to start their next chapter.

Both, ideally at the same time. Your family lawyer will handle the separation agreement and title transfer. 

An independent mortgage broker who specializes in BOTH reverse mortgages and alternative lending can assess what's realistically possible before you finalize anything with your lawyer. 

This matters because reverse mortgage lenders will not provide a formal quote or approval until a separation agreement is in place if they know the loan is to buy out a departing spouse.

A good broker can tell you in advance what is achievable, whether through a reverse mortgage or another lending solution. 

Working with a tenured and knowledgeable broker can help prevent you from spending time and legal fees drafting an agreement based on numbers that turn out not to be possible prolonging an already difficult situation.