Till equity do us part? Prices prompt moves
As home prices rise across the country, some unhappy couples are seeing it as an opportunity to part ways without losing a ton of money from their real estate assets, according to an article at RISMedia.
Divorce attorneys and real estate professionals are reporting an upswing in clients who are divorcing.
“So many couples have been living together and biding their time,” said Leigh Sigman, an Orlando lawyer. “I know many people who have coasted for years and only touched base with me periodically – until they got equity in their homes.”
During the housing market crash, home prices fell dramatically in some areas, causing the home in a marriage to become one asset that no one wanted in a divorce because of the large amount of mortgage debt it carried, according to Sigman.
But some metros are seeing that as home values rise, divorce rates are too.
“I have seen many of the deals we’re doing have involved a divorce – selling a house because of it or buying because of it,” said Robert Tenaglia, a real estate professional in Orlando. “When people don’t have equity and don’t have money, it dissuades them from going through the final step.”
Many couples may need the equity from the house sale to cover the costs of starting a new life and for a down payment on a new home or an apartment deposit, Tenaglia said.