For California residents, a slowly improving real estate market may mean an easier path to divorce. Real estate property division is a significant factor for many who choose to end their marriage, and a depressed real estate market can lead some to delay filing for divorce until the chances of a successful sale have improved. However, recent property sale trends suggest that now may be the best time to file for divorce and begin the process of building a strong financial foundation for the years ahead.
When property sales are poor, couples can find themselves upside down in their home; holding less equity in the property than it is likely to fetch in a sale. This can leave some couples with very few options when it comes to the need to negotiate a property division settlement in divorce. The spouse who retains the family home often assumes a great deal of financial liability, with no guarantee that the market will improve.
In recent years, however, real estate values have begun to climb. While they are still nowhere near the boon years of decades past, more families are able to sell their home at a profit. This shift could result in more spouses filing for divorce over the coming year.
While improved real estate property division prospects represents great news for divorcing spouses in California, it is important to keep in mind that a home sale is just one part of a much larger overall property division process. The best way to assure that a favorable property division outcome is reached is to work closely with one’s divorce attorney to explore all of the various ways to divide assets and debts. Making wise financial decisions at this stage of a divorce can have a great deal of impact on an individual’s financial horizon.
Source: Orlando Sentinel, Divorce and home values: Till equity do us part, Mary Shanklin, Aug. 30, 2013