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The Effects on Divorce by the Real Estate Market Crash

In any newspaper you look at now days, you will most likely see one or more items reporting on the mortgage crisis. Though there are some markets that have not yet been affected, most places in the country have been hit hard by the subprime market crash in some way. Because of this, most homeowners have been affected by the crash. Because of the market getting worse every day, many people are finding it hard to get on with their lives. Couples who are getting divorced are having a very tough time moving ahead with their lives because of the problem with the real estate market.

Selling the home is a common thing for divorcing couples to do so they can split the money from the sale and each go his or her own way. So many homes are up for sale and not selling. Since more and more homes are sitting unsold, couples getting divorced are having a hard time selling their homes and many are not selling at all. When their homes don't sell, they still have to keep up the mortgage, causing problems for them in many other areas of their lives, such as child support. It can even have an effect on where the couple can live after the divorce is finalized.

Because of the problem in selling the home, post-marital cohabitation is becoming an increasingly common trend. Living in the same house after divorce is something almost no one did until recently. But the current real estate market is practically forcing many couples to keep living together after the divorce because the home won’t sell. Until it does sell, they can't afford to live in separate homes.

There are many divorced couples who have to live together for as long as a year or even longer since the average time it takes for a home to sell grows longer. Couples who are older with fixed incomes are among those who find that this is a big problem. Those with young children also have a serious problem. The only way they can live in separate homes is to go with options that are too small for the parent and the children.

Moving in with family is often the only option available for couples who just can't live together at all and have to live in separate places.

Divorcing couples in situations like this don't have very many choices open to them. When a couple is getting a divorce, one of the things they now have to decide because of falling home values is whether to stay in the home is the hopes that the market will improve soon or short sale the home in order to get out. In some cases, couples can't keep up on the mortgage payments and the home goes into foreclosure.

The problem of not being able to sell the home when a couple divorces is causing so much tension that judges are finding themselves caught in the middle trying to settle the matter. When one person wants to sell, even at a loss, and the other wants to stay in the home and wait for the market to get better is the most common situation that pulls the judge into the matter. Because they believe the market will get better in time, judges are reluctant to order a home be sold right away.