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Daily Real Estate News | July 20, 2009 | When Divorce Interferes in a Transaction
Marriages already strained by the economic crisis are thrust into even worse territory when couples choose to divorce but cannot sell their homes.

Each spouse needs the proceeds of the property sale to make a downpayment on another home or to otherwise move on with their lives; but in many instances, there are no takers for the residence and the owners owe more than the real estate is worth.

While one spouse might move in with family or friends, the couple often has to remain in the home together to wait out the housing downturn.

This causes even more friction, and New Jersey divorce attorney Vikki Ziegler is worried the trend could lead to a rise in domestic violence.

In some cases, the home is divided into "his" and "her" areas, or estranged spouses take turns living in the home with their children. Some couples are using retirement accounts to make divorce settlement payments.

The situation can be even more complicated when one partner wants to keep the house and refuses to agree to a sale arrangement.

"They never agree to the price, the terms, or make themselves available for showings," says Elizabeth Blakeslee of Coldwell Banker Residential Brokerage in Georgetown, Washington, D.C. She acknowledges that real estate agents are not marriage counselors, but they should be aware of the financial considerations involved when a split couple is trying to sell their home.

"Anytime there's a peripheral issue (like divorce, a job loss, death or possible foreclosure), it's important to get it all out in the open," she says. "If a couple is getting a divorce and trying to sell their house, they need to give their [real estate agent] as much information as necessary."

It also is critical, Blakeslee adds, for the property professional to assign the home an appropriate asking price and to avoid siding with either spouse.

Source: Washington Times, Carisa Chappell (07/17/09)

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