Tag Archive for: marital home

Real Estate Slump Presents Divorce Complications

When a married couple divorces, the property they own must be divided between the two spouses. Who gets the marital home has traditionally been one of the most contested property division issues in a divorce. Traditionally, the value of a home increases over time and therefore the home would have a large amount of equity that had been built up over the course of the marriage.

However, the economic downturn has had a profound impact on family law. Once robust retirement accounts are worth a fraction of their past value and many spouses have been laid off. Each change in the economy changes how couples need to structure divorce settlements, but the collapse of the real estate market has been an especially difficult issue.

The real-estate bubble has burst and this has changed the way many divorcing couples view their marital homes. With real estate inventory piling up on the market, there is no guarantee that a home would sell in a timely fashion or at a profit. Many homes are worth less than the amount owed on the mortgage and there is no guarantee that a short sale will be successful.

With many homes now seen as a liability instead of an asset, property division is becoming a more complex issue. Divorces that would have been uncontested divorces in the past are now turning into contested divorces. If you are considering or going through a divorce in these difficult economic times, it is important to consult with experienced family law attorney who takes a detailed approach regarding marital property division.

Source: The Star-Ledger, “Today’s real estate market calls for dire divorce decisions,” Sarah Portlock, 12/5/2010

Couple who divided house with makeshift wall officially divorced

Marital property division can be one of the most complex issues in a divorce. Property division can be especially complex when the spouses have been married a long time and have accumulated substantial assets together. A recent high assets divorce provides a rather stark example of how difficult dividing property can be.

The divorce began about six years ago. In 2005, the wife forced her husband out of their marital home. In August 2005, a family court judge ordered that the husband could move back into the house if he divided it into two units. This required constructing a physical wall in the house.

The wife appealed the 2005 court order requiring the wall. About one year later, an appeals court allowed the wall to be constructed. The wall divided their three-story dwelling by separating the first-story living room from the staircase leading upstairs. The wall went up in December 2006, and the couple has been living together, yet apart, since that time.

The divorce was then delayed due to a change in the law and a bankruptcy filing. Now, after five years, a judge gave his final ruling in the divorce case. The judge ordered that the couple sell the now divided house and two other properties and split the profits between the two spouses. In addition, the husband, the former owner of a factory, was ordered to pay the wife a lump sum of about $1.5 million plus $6,000 per month. However, he can keep several other buildings he owns.

The wife has indicated that she will appeal the judge’s ruling, which could delay the sale of the home indefinitely.

Source: NPR, “NYC Couple Who Split House With Wall Get Divorce,” 4/28/2011