Paso Robles Real Estate

Economy Takes Toll On Marriages

This economy is definitely taking its toll on many marriages, and it is even tougher on divorces. Divorcing couples may not be able to sell their homes 1) in a timely fashion or 2) for enough cash to pay off their mortgages, home equity lines and credit cards. Job losses and today’s tougher mortgage standards make it harder, too, for one spouse to buy out the other.

Couples can try and hang onto the home until the market improves, but that is forcing two people to live in the same household and share finances when they don’t want to be together. Also, if one of them stops paying on the mortgage, it can cause housing and credit problems for the other spouse. If one spouse can qualify to take over the payments and buy out the other, it is probably best to transfer the home to that person. If couples can’t afford to do that, there is always the Short Sale route if the bank will agree to it.

Only one in ten divorces end up in court, so most couples are negotiating their own arrangements, which is fine in most cases, but if an agreement cannot be made or there are muiltiple investments, retirement funds, etc., an attorney should be consulted.

If you have any real estate questions or general questions about San Luis Obispo North County, please contact me via email, call me at (805) 235-0234 or visit my website for more information.

Tags: credit problems, divorce, economy, retirement funds, tougher mortgage standards