Tuesday, December 30, 2008
Breakups and Housing Fall
Breakups are costly. Especially if one or both parties bring significant resources to the union. And if both parties have invested in real estate, splitting the sale money post-breakup might not be what it once was. When couples buy property together they face a different melody in the reality of the big housing fall.
The Times has a good piece on this. A paragraph says:
"In a normal economy, couples typically build equity in their homes, then divide that equity in a divorce, either after selling the house or with one partner buying out the other’s share. But after the recent boom-and-bust cycle, more couples own houses that neither spouse can afford to maintain, and that they cannot sell for what they owe. For couples already under stress, the family home has become a toxic asset.
“It’s much harder to move on with their lives,” said Alton L. Abramowitz, a partner in the New York firm Mayerson Stutman Abramowitz Royer.
Mr. Abramowitz said he was in the middle of several cases where the value of the real estate could not be determined. “All of a sudden,” he said, “prices are all over the place, people aren’t closing, and it becomes virtually impossible to judge how far the market has fallen, because nothing is selling.”"
Read more here.