Tag: divorce house

Coronavirus Divorce Spike and Property Prices

Posted by Ron Kauffman on

The coronavirus divorce spike is having an impact on property prices. Many have heard that the financial impact of shutting down the economy, coupled with the stress of being in quarantine for months, is causing a surge in divorce rates. That increase is also impacting property values.

divorce property

House Hunters

In Great Britain, there has been a 42% rise in divorce inquiries between mid-March and mid-May, compared with the same period in 2019, according to the figures from Co-op Legal Services.

Based on the latest divorce data from the Office for National Statistics (ONS), this could mean an extra 38,346 couples could be calling it a day in 2020.

Some are speculating that therefore; the property market could see a boost of 38,346 homes entering the market if these additional divorces lead to the sale of the family home.

With the current average UK house price at £243,809, the addition of divorce properties hitting the market could total over £9.34bn ($11.85bn) in transactions for the property market, according to research from estate agent Barrows and Forrester.

Florida Divorce

I have written on the topic of divorce and coronavirus issues in the past. For many couples simply putting a shared home up for sale may seem like the simplest solution, but remember, that step won’t automatically erase all mortgage headaches or end the need to co-operate with your former spouse.

You will still need to agree on a realtor and asking price as well as determine how the continuing mortgage payments will be made. Will you be splitting the expense 50/50? Will the spouse who continues living there make the full payment?

If your home sells for more than the outstanding balance on the mortgage, how will the remaining proceeds be divided between you both after settling the joint debt? Worse, if you end up underwater on the mortgage, you’ll have to decide if you can even afford to sell it and how you’ll pay off the remaining debt if you do.

There are also the taxes. You can each exclude the first $250,000 in capital gains — the amount your home has appreciated in value since you bought it — from your taxable income, if the home was your primary residence and you owned it for more than two years.

If you opt to file a joint tax return, you can exclude up to $500,000. Earnings above that exclusion or on the sale of, say, a vacation property, could stick you with a tax bill.

Miami Divorce Spike and Property Prices

The surge in divorce filings and the impact on property owners, it is thought, could provide a much needed boost to the industry which saw market activity slow to a trickle for much of the lockdown as the UK government urged against house moves, with many estate agents shutting their doors with physical viewings and valuations off the cards.

The coronavirus sparked the biggest monthly fall in UK house prices since 2009, according to lender Nationwide’s closely followed house price index.

The same is true in Miami, where home sales in South Florida plummeted in April. Sales of both condos and single-family homes dropped nearly 40% in Miami-Dade and Broward from the same month in 2019.

Incredibly, median prices continued to increase. Median prices rose for both single-family homes and condos, despite the pandemic and drop in sales. Sales under contract in February and March, closed in April, reflecting a strong first quarter.

The median price for single-family homes grew by 7.3%, from $356,000 to $382,000. The median condo price increased by 6.9%, from $248,000 to $265,000.

More than 90% of median-priced single-family homes and condos sold for at or near the asking price. Cash transactions comprised 22.1% of all transactions, down from 34.8% in April 2019. That’s still more than the national percentage of 15%.

However, some think divorce property on the market could lift property stock and keep prices up amid a considerable increase in buyer demand since the industry lockdown was lifted in May.

Unfortunately, divorce is an inevitable aspect of modern-day life and one that has been exacerbated as a result of a lengthy lockdown at home with our significant other. It’s also one of three influences that regularly see properties come to market, along with death and debt, as couples look to divvy up their existing assets in order to move on in life.

The one positive of this is there has been a huge uplift in buyer demand since the property industry reopened last month but a continued hesitance by some sellers to list and this stock boost should help meet this demand while helping keep house prices buoyant.”

The UK Yahoo article is here.

 

Real Ex-Housewives of OC

Posted by Ron Kauffman on

Gina Kirschenheiter, one of two new cast members this season on “The Real Housewives of Orange County,” and her husband, Matthew, have decided to divorce, and sell their Coto de Caza house. What goes into the decision to sell the marital home?

Divorce House

Real Trouble in OC

They may live in the lap of luxury, but life isn’t always perfect for the women who reside in one of the wealthiest enclaves of the U.S. The real housewives of OC may continue to focus on living large; plastic surgery, working out, shopping, drinking, and dancing, but real life sometimes intrudes.

The Bravo TV personality filed for divorce from Matthew Kirschenheiter claiming irreconcilable differences. She’s seeking sole physical custody and joint legal custody of their three children, ages 2-5, as well as spousal support.

Once you’ve decided to divorce, new decisions need to be made: who is going to move out of the house, and are you going to sell the house – or not. Florida’s property division statute requires distributing the marital property but is not exactly a how-to guide.

Deciding Whether to Sell

There’s really no right or wrong answer to whether you should sell or keep a house. Your decision will depend on various factors.

Some of the factors influencing the decision to sell are things like your personality, is the house titled in both of your names, are there children, if so, where are the best schools, and how far away are the two parents’ homes.

Equitable Distribution

I’ve written about houses and property divisions before. In every Florida divorce proceeding the court has to set apart nonmarital property and distribute the marital property.

Florida judges always begin with the premise that the property distribution should be equal, unless there is a reason for an unequal distribution based on several factors.

One of the factors the court has to consider is the desirability of keeping the home for the kids or a spouse, if it’s equitable to do so, if it’s in the best interest of the child, and financially feasible.

The Sale

There are problems with keeping a house in which your name is still on title. If your real ex-spouse doesn’t pay the mortgage timely, your credit will suffer. And, if someone invited to your old home is hurt, the injured person will sue the record title owners for damages. If your name is on title as an owner, that’s you! Making sure you keep insurance on the house may be required.

A fresh start and new beginning after a complete division of all of the assets tying you together with your Ex is the best way to go forward for some people.

The Real Housewives couple bought the house in 24-hour, guard-gated Coto de Caza in April 2016 for $840,000, property records show. The gourmet kitchen includes Viking appliances, wooden cabinets and a breakfast nook. There’s also a landscaped backyard with a lawn and barbecue area. The house has a three-car garage and is within walking distance of a community park.

The Mercury News article is here.

 

Divorce and Leaving the House

Posted by Ron Kauffman on

Rumors abound of marital discord between Melania and President Trump. Generally, couples fight over who stays and leaves the house during a divorce. What if the marital home is the White House should the First Lady move out?

Meet the Trumps

Some people are claiming the issue of vacating the marital house is uncharted territory for a sitting president (assuming they divorce), since no American president has ever gotten a divorce while in office.

Usually, both spouses are entitled to stay in the marital home. However, staying in the home can be denied if a spouse is damaging it, or the children are exposed to domestic violence, for instance.

However, Donald Trump doesn’t have a deed to the White House, it’s not his property. The White House is owned by the people of the United States of America.

There’s also the issue of presidential security. Having an estranged spouse in the White House may make the Secret Service uneasy if there were divorce proceedings.

Housing Issues

I’ve written about the marital house during a divorce before. Generally, the home remains a marital asset, which is subject to equitable distribution, regardless of who lives there during the divorce process.

If a home is marital then both parties have equal rights to buy – out the other’s share. Both may also be on the hook for liabilities.

Children’s Issues

Until a divorce parenting plan in place, if you are interested in maintaining a meaningful relationship in your child’s life, leaving the home before a timesharing agreement is entered may show a lack of real interest in the child’s daily life.

Moving out can create the appearance of a new ‘primary residential parent’ by default. Worse, if the process takes a long time, it creates a new status quo.

Cost

The person leaving during a divorce may still have to contribute for the expenses of the home while also paying for a new home. It can be costly, and prohibitive expensive when you know that the process will take a long time.

Settlement

Staying in the same home could create an incentive to negotiate a final settlement because living with your soon to be ex-spouse is very uncomfortable. However, if someone moves out, the person remaining in the home is sitting pretty and may be less inclined to settle.

If you Leave

Before moving out, there should be some discussions about maintaining the home and who is paying for which expenses, an inventory should be made of the personal property, artwork, silverware etc., and the boundaries for when the ‘out-spouse’ can use and enjoy the home after vacation

1600 Pennsylvania Avenue

Because both sides during a divorce have a right to live in a “jointly titled home” during divorce, except for extreme circumstances such as domestic violence, the First Lady should have no trouble.

However, the White House is part of the President’s compensation package for serving as President of the United States. If so, it is President Trump’s right to live there and not his spouse’s.

They could also both live in White House. The White House is built big enough that Melania would have an entire room, bedroom, almost a wing, just for herself.

Having been burned down by the British, the White House could easily handle divorcing spouses. Right?

The Daily News article is here.