In many California divorces possession of the family home is one of the most contentious issues. This should hardly be surprising: a house is the most expensive thing most people will ever own. As a recent article on Examiner.com notes, however, the national financial crisis has changed the way some people think about homes when they are splitting up. The article notes that it is no longer uncommon for both divorcing spouses to want the other one to take the house.
An analysis by Bloomberg News last summer indicated that 26% of properties nationwide are now ‘underwater’ (i.e. the property is worth less than the outstanding mortgage on it), and cited alarming statistics from Deutsche Bank predicting that the underwater rate might rise to 48% – yes, nearly half of all homes – by 2011. Looked at that way the trend cited by Examiner.com might not be so surprising. A house with a severely underwater mortgage can be seen as a liability rather than an asset.
Situations like these highlight the need for consultation with a skilled Orange County family law attorney if you are considering a Southern California divorce or legal separation. Attorneys from an experienced Southern California family law firm can assist with the division of assets in today’s treacherous economic environment.
An underwater mortgage was once almost unimaginable – particularly in areas like Southern California that have long been known for their ever-rising property prices. Coping with this, and the other Los Angeles family law challenges emerging from the current recession, requires the services of a skilled professional.
Examiner.com: And you can have the house!