Until 2007 when the housing market starting taking a nose dive, the issue of who could be awarded the marital home was determined by which party had the financial means to buy the some other party’s interest inside property. So if at the time of trial that will will be determined that will marital home was valued at $100,000 in excess of the amount owed, then the party with the ability to pay $50,000 to the some other party could be awarded the house.
Even if neither party had $50,000 in cash to pay the some other party, one side probably could refinance the house to take out the money to pay the some other party if they could then afford the resulting increase in monthly mortgage payments. Sometimes both parties were in a position to do so. In addition, the “buy out” of the equity inside marital home will be balanced against the division of some other property. For instance, if one party received $100,000 in equity inside marital home, in addition to also the some other received $100,000 in some other assets, then neither party could owe the some other. Debts must also be taken into account.
however in today’s economy, when that will comes to deciding who gets the marital home, the issue more often will be who will be stuck with the house? Because right now we have half or more of all properties “upside down” in value. right now we have a house being awarded to one party or the some other in addition to also there will be not only no equity, the house will be valued at less than what will be owed on that will. in addition to also no, the person who gets the house does not get to take that will for negative value. They get that will for nothing, however they are stuck buying a house for more than what that will will be worth!
When neither party wants the house we sell that will, right? however that will will be difficult to sell a house that will will be worth less than will be owed. This kind of means a short sale. that will means both parties suffer a hit to their credit. Once, the parties in a divorce sold their house in addition to also each received enough money by the sale to go out in addition to also buy a brand-new house. right now parties let their house go into foreclosure in addition to also both have difficulty even renting a home because their credit has suffered.
Divorces today are characterized by a house worth less than what will be owed, one spouse who has lost their job or experienced a cut in pay, increased debt as a result of a loss of income, in addition to also almost nothing however personal property to divide when all will be said in addition to also done. Some couples just can’t afford to get divorced.
How the Economy has Changed Divorce