Obtaining A Divorce In An Expensive Housing Market
The real estate market is constantly fluctuating, which can put couples in a tough spot when it comes to dividing real estate during divorce. Low inventory and an increase in housing prices in Florida could, for instance, encourage divorcing parties to sell, or could make them wary of doing so out of fear that they won’t find a replacement residence. Below, we discuss how the housing market could affect your Florida divorce.
Equitable Division of Real Estate
The housing market can affect certain aspects of the property division process. Florida, for instance, is an equitable division state, which means that all marital assets must be divided fairly between both spouses. This can become complicated for those whose primary residence is their main marital asset. In these cases, a couple will have two options, which include either:
- Selling the residence and dividing the net profits fairly; or
- Attempting to buy out the other party’s share of the residence.
There are pros and cons to both of these options. Selling a residence, for instance, can give couples a fresh start in a new place, while also ensuring that they have the funds to find a new place to live. Those with minor children, on the other hand, may want to keep the home in the family’s ownership, so as to cause as little disruption to the children’s lives as possible. The best option for a family will depend on whether the couple has children, the economic circumstances of both spouses, and the nature of the parties’ relationship.
How the Housing Market Could Affect Property Division During Divorce
The state of the housing market can have an effect on both of these options. In an expensive housing market, for example, it may simply not be feasible for one party to buy out the other. Those who are able to do so may also be at risk of suffering a financial loss if the market changes suddenly and the value of the home plummets. However, before deciding how to divide a home, couples should remain aware of how difficult it could be to purchase a new one, especially when the parties no longer benefit from a combined income. As we mentioned earlier, inventory is currently low and prices are higher than they used to be. As a result, mortgage rates have gone up meaning that homeowners could face logistical and financial difficulties when trying to find a new home or qualifying for a new mortgage.
Are You Considering Divorce?
The housing market can have a significant impact on how homeowners approach the property division process during divorce. While demand is high in Florida, inventory is also low, so although selling a home may be relatively simple, finding another place to live could prove challenging. Before deciding what to do with your own home during divorce, consider consulting with experienced Florida property division lawyer Sandra Bonfiglio, P.A. We can help you understand your options and the potential consequences of your decision. To set up a free consultation, call our office at 954-945-7591 today.