When couples split, the home is a hot potato

Apologies for the seriously long delay from posting, as unfortunately the phone calls and emails to my offiice went from busy to "ballistic", due to the financial sector being on the verge of a total collapse.

There is a very interesting article in today's (11/21/2008) Miami Herald about how the current mortgage crisis is having an impact on the typically largest asset of marital property to be divided in divorce, the former marital home.

During the real estate boom, couples battled to end up with the house, either buying the other spouse out of their share in the hopes of just staying in the home (especially if there were children involved), or many times with an eye on cashing in on a rapidly appreciating asset.

My how times have changed. Today instead of seeking sole possession of the home, couples are now viewing the former marital residence as a toxic waste dump and want no part of it. To date this has not been a common occurrence here in Massachusetts, however that trend may not continue.

To date the foreclosure crisis has been most acute in Florida, California, Arizona, and Las Vegas. However, the trend is that many other states are rapidly seeing their foreclosure rates skyrocket, and as a result the Northeast probably will begin seeing many of the same issues surrounding foreclosures as the states currently most impacted.

Over the next few years, I can see this issue becoming very important in the wording of a marital separation agreement, and it could become one of the more highly litigated issues in divorce.

The story can be found here: When couples split, the home is a hot potato

A tip of the cap to The Home Equity Theft Reporter, Cases & Articles blog for spreading the word about this story