Now that the economy is improving and the housing market is rebounding, the number of divorces and home values are rising in California and elsewhere around the country. One divorce attorney says that many couples stayed together through the recession, and now that things are better, they are moving on. During the recession, assets were decreased and divorce would result in a huge financial blow to both parties involved. Now that divorces and home values are rising and interest rates have fallen, couples can split without taking a huge hit.
According to current real estate data, median home prices in Southern California are nearly 25 percent higher than they were this time last year. If a divorcing couple were to sell their home in today’s housing market, they may be sharing a larger amount of income from that sale. This can make it easier to start over and establish separate households, which is something that would have been difficult just a couple of years ago.
Some research shows that the United States isn’t the only place where couples stay together due to economic hardship. In Britain, the divorce rates fell dramatically when the country endured a financial crisis in 2008. Some experts point out that the hard times themselves may be the cause of the divorce, since plummeting housing prices and skyrocketing inflation can put a lot of pressure on marriage relationships and make property division a nightmare.
The number one piece of advice for couples that want to divorce and aren’t sure if they will be able to survive the division of their property is to seek the advice of an experienced divorce attorney. Such an attorney may be able to clear up any questions, mediate negotiations, and help clarify the financial repercussions of the divorce.
Source: Los Angeles Times, “Divorces increase as improving economy makes split-ups affordable“, Stuart Pfeifer, September 18, 2013