So many couples have been biding their time and continuing to live together in unhappy relationships. We have clients who have put up with each other over the past few years, checking in with us periodically to determine if their home values have recovered to a level that would allow them to sell their homes and walk free and clear, or with a prescribed amount of sales proceeds.
Before the 2007-09 recession, most couples who divorced vied first for the children, and then for the real estate assets. However, after the economic downturn stripped homes of 30-50% their value, the one-time happy abode shifted from an asset to a liability and becoming something that no one wanted in the divorce because it came with a mountain of mortgage debt. For better, for worse - or until the house can sell for a profit?
Exactly how the housing market might be affecting the divorce rate is uncertain. In many states including Ohio, divorces were on the downslide from 2007 to 2008, heading into the recession, but the per-capita rates for the state have increased since then. Meanwhile, home values have had a bumpy ride over the same stretch, bottoming out in 2011 before rallying in the past 2.5 years.
To local divorce attorneys and real estate agents specializing in assisting sellers during a divorce, what's happening is clear: after years of putting up with each other, unhappy couples are moving forward with divorces that were put on hold while the couples waited for home values to improve.
Stan Humphries, chief economist for the real estate-research firm Zillow Inc., said a decrease in the percentage of underwater homes has allowed more homeowners to sell at a profit, so they can finally relocate to other parts of the country, and has allowed more couples to make marital decisions without worrying about a distress sale ruining their credit.
These individuals can now sell, liquidate their assets and go their separate ways without the baggage or need to fight over who is responsible for the debt associated with the home.
According to Zillow, the number of "underwater homes" - properties worth less than their mortgage balance - has declined from 54% of all mortgaged homes in the fall of 2011 to 41% as of July 2013.
Many real estate agents, especially those who specialize in assisting divorce attorneys, and their clients, report an increase in the number of divorcing couples and divorcees they've assisted in recent months and as the housing market has continued it's recovery and home values have increased.
For many, getting even a little equity out of the sale of the home means not only that they needn't worry about covering the costs associated with the sale, but also the additional funds can help these folks to get restarted with a new downpayment or apartment deposits.
Home-sale profits may not be the only real estate transaction affecting couple's relationships.
A woman recently commented that she was able to transition out of a marriage that no longer made sense when Bank of America agreed to modify her monthly mortgage payment from a high of $2,200 a month to about $1,400, which was an amount she could begin to afford on her own.
Many lawyers assert that the main issue is that couples sometimes stay together simply because they don't have enough money to leave each other.
The recent surge in divorces, although an unhappy experience, is yet another indication that home values across the nation continue to improve.
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley Columbus Delaware Downtown Dublin Gahanna Grandview Heights Granville Grove City Groveport Hilliard Lewis Center New Albany Pickerington Polaris Powell Upper Arlington Westerville Worthington
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