Tag Archive for: real estate

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

The economy and timing affect financial goals in divorce

One of the primary steps in divorce negotiation is marital property division, and one of the main assets that typically needs to be divided is the marital home. If you have to sell your house during a divorce, the real estate market will determine whether you make or lose money by selling. During a down real estate market, like the one we’ve been seeing in Milwaukee, you could lose most of the equity you have built in the house. To avoid all of this, one party can keep the house and the other can take other assets in exchange for the value of the equity.

The state of the overall economy definitely has an effect on how a divorce can affect you financially. You may have to move, apply for more credit, or even get a new job as a result of a divorce. All of these things are easier to do in a good economy.

If a couple has children under the age of 18, child custody and child support can complicate financial matters. If custody of the children is split between both parents, each one will have to pay living costs for each household, instead of combining their incomes for one household. If one parent has custody, it may become more stressful for the other parent who has to pay child support.

Getting a divorce during bad economic times requires careful consideration and planning. Thankfully, people faced with divorce in Wisconsin do not need to go through the process alone. Experienced family law attorneys are available to help people protect their financial interests through the course of the divorce process.

Source: MSNBC, “The best and worst times (financially) to get divorced?,” Angie Mohr, Aug. 8, 2011