A while ago I posted the blog “Lawyers vs. the Economic Downturn,” noting that family law lawyers are getting busier as the financial crisis strains personal relationships.
Today the New York Times published the story “Breaking Up Is Harder to Do After Housing Fall,” discussing the curious correlation between the economy downturn and divorces.
Make no mistakes, people are still getting divorced. However, as the biggest assets accumulated during marriages are often real properties (family homes, vacation properties), the falling housing market makes the emotionally and financially difficult process even worse.
According to the Times, “We used to fight about who gets to keep the house,” said Gary Nickelson, president of the American Academy of Matrimonial Lawyers. “Now we fight about who gets stuck with the dead cow.”
In certain cities in the U.S., the housing market has been so volatile that the exact value of the assets is difficult to determine and nearly impossible to divide. In the Times story, one property in Santa Barbara that had been appraised at 2.3 million at the beginning of the legal proceeding had fallen $600,000 by the time it was sold. After paying off the mortgage, the former spouses had little as they went their separate ways.
As a result of the housing market crash, a growing number of divorced couples are deciding to live their separate lives under the same roof because they can’t sell their homes. This can lead to the unfortunate scenario where one former spouse may parade his or her dates in the other’s face.
Although getting a divorce more challenging in difficult economic times than ever, when marriages break down, brave individuals are undeterred as they set out on their separate paths. Perhaps happiness is indeed something that money can’t buy.
