Divorce Property Agreement Shocker - No One Wants the House

In what is a novel twist for divorce property settlements, more and more individuals going through a divorce are seeking ways to structure the divorce property agreement so that they DON'T end up with the home.

In a divorce, the home is usually the biggest asset assignment to be determined by the divorce property agreement. However, the downturn in the economy along with the wholesale collapse of housing prices has resulted in diminishing equity in homes all across the nation.

It used to be that when a couple divorced, there was a significant amount of equity remaining in the home. And in setting up the divorce property agreement, there was often a battle to determine who would end up keeping the home, along with the resulting equity value, to help them start anew in their single life.

But, today, the person who the divorce property settlements determine ends up with the home, will most likely end up with a pile of debt to their name as well. And, far from giving them a new lease on life, it will likely drag them down for many years until they can manage to pay off enough of the debt to sell it.

As a result, in some parts of the country, the divorce rate is going down. Not because the couple has had a change of heart and doesn't want to divorce. But, because the house is so heavily mortgaged, they simply can't afford to divorce until home prices return to where they can sell it and not take a loss. In a way, their divorce has become a prisoner of their mortgage debt.

In the words of Attorney Gary Nickelson, President of the American Academy of Matrimonial Lawyers, "Everybody wants the asset that's worth something. Nobody wants the asset that's not worth anything or has debt attached to it."

In some cases where the couple can't decide on who will be stuck with the house, and where neither party can afford to rent a place of their own, both husband and wife may end up living there together and putting their divorce on hold.

Dividing property in a divorce has always been one of the more tricky aspects of the entire process and can easily test the patience of all parties involved. But now, with the housing crisis, if two people want to divorce and yet, not live together, they will have to come up with new and creative ways to structure the divorce property agreement/settlement in a way that will be beneficial for all parties involved.

Parenting Classes for Divorce
The non-profit Conflict Resolution Center in Roanoke, Virginia has just offered parenting classes for divorce that targets parents with children who are going through a divorce.