Amidst decreasing home values, a seemingly stagnant unemployment rate, and cuts in government services, couples undergoing divorce must still divide property, and decide over custody of the children. However, the recession has affected how couples view their various assets to be divided in curious ways. Due to plummeting property values, many couples now owe more than their home is actually worth. The normally highly contested "home sweet home" has turned into a "home sour mortgage" making dividing ownership of the property or deciding what to do with it a financial hot potato which neither side wants to be stuck with.
As if dividing real and financial assets wasn't hard enough, courts, parties, and attorneys now have to deal with dividing negative assets. How is debt fairly distributed much like savings? Often, the simple answer may be that the party who can afford the mortgage keeps the debt and real estate. However, another issue which may affect the outcome of settlements is the issue of support. As one party may lose his or her job, he or she will rely on child or spousal support. However, there often isn't enough income to spare since the separate households now cost more and make less than they previously did as one.
For further information regarding divorce and more please contact the Orange County Divorce Lawyers at 714-971-8000. Call today for your free 60-minute consultation!
