In these hard economic times, many couples are sticking together solely because of perceived monetary impediments to divorce. With the right help, however, you may not have to choose between happiness and financial wellbeing.
Divorce and the Economy
According to a study conducted by the University of Virginia, nearly 40 percent of married couples who were planning on a divorce or separation before the recession put their divorce on hold once the economy crashed. While the choice to abandon the pursuit of a divorce is no doubt complex and there are multiple reasons for this trend, researchers noted one prominent economic cause: declining home values.
Many couples contemplating divorce are now locked into upside-down mortgages. Since splitting up a household often involves making new living arrangements, couples divorcing in this situation are afraid that they will swallow a significant loss on the sale of their homes. Unfortunately, many of these couples make the decision to "tough it out," hoping that the real estate market will rebound.
To delay a divorce often means choosing to continue to suffer from the problems that plague a marriage, such as infidelity, communication problems, financial stress and cultural strains. Some individuals even decide to stay in marriages tainted with alcoholism and physical or emotional abuse because they are afraid of the economic consequences of divorce.
If you find yourself in this situation, do not simply "accept things as they are." Know that there are ways to protect your financial future while moving forward with your life. An attorney experienced in divorce involving businesses or real estate can discuss the various federal government programs available to you, as well as the options for your home (such as a short sale or allowing one spouse to retain ownership of the house).
Dividing Real Estate Holdings in Divorce
Anytime a divorcing couple jointly owns a home or other real estate, a number of complex issues come into play. The couple must agree upon the real estate's value and divide any equity. In addition, for some couples, a portion of a home's value may not be considered marital equity.
And what is to be become of the home itself? A sale followed by division of the proceeds, or occupancy by one of the former spouses are the two most common options. Even if the spouse who stays in the home does not have the cash to compensate the other for the real estate's equity, options such as balancing home equity with the award of other assets, refinancing the mortgage, or arranging payment over time may make a split workable.
If you believe divorce may be right for you, do not let real estate concerns hold you back — contact a qualified real estate and divorce attorney to sort out the complexities and explore the legal options that could make it possible.
