The Precarious Role Real Estate Plays In Divorce

17 December 2014
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Blog
divorce blog
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Making the decision to divorce is often challenging enough without the added burden of financial woes. Unfortunately, for many couples the stress of divorce is exacerbated when they discover the equity in their home is less than what they thought – as this will affect their future finances and prospects.

The high cost of living, in hand with the unexpected costs associated with selling the family home, is further complicating the separation and divorce process.

High Mortgages, Little or No Equity

The conundrum can be especially difficult for couples who still owe a substantial amount on their mortgages. The aftermath of the mortgage crisis has found many homeowners with little or no equity in the marital home. These couples tend to have high monthly mortgage payments making it difficult for a divorcing couple to hang on to the marital home and make the monthly mortgage payments alone. The possibility of selling the marital home tends to prove even more difficult when there is no equity to be realized.

Couples can contact their lender/bank for information on temporary or long-term relief options, including options that allow you to stay in your home (e.g.: forbearance, repayment, modification) or leave your home while avoiding foreclosure (e.g.: short sale, deed-in-lieu of foreclosure). The couple needs to decide to contact the bank jointly before the divorce is filed or should one party contact the bank alone anticipating the filing of a divorce. Either way it is important for divorcing couples to know their options.

Rethinking Living Arrangements

In the case where there is not enough equity built up at the time of the separation many couples are opting for less conventional living arrangements. Some couples decide to live much like roommates with one person moving into a spare bedroom or the basement. In some cases this can work well and in others it is far too stressful.

Seeking Legal Counsel for Divorce?

Martineau Davis & Associates understands just how emotional divorce can be for all involved. If you are considering divorce, we strongly recommended that you seek independent legal counsel early. You should be aware of your rights and the often overlooked pitfalls and implications of terminating a marriage.

For all your divorce matters and/or inquiries, we invite you to call our experienced family law attorneys at Martineau Davis & Associates at (401) 398-8333.

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