It just occurred to me that people who are on the point of divorcing (I'm not, don't worry!) might, en masse, decide to get it over with before any house price crash - sell the family home, split the cash - both ex-partners rent until prices have dropped enough to each buy a decent place.

Divorces are actually quite low compared to years gone past (perhaps due to co-habiting instead of marrying).
The excuses made by the VIs about prices being high cos of demand from couples splitting is horse-shi+

I think you will find in divorces that one party, usually the female, is determined to hold on to the house at all costs. This is often in opposition to advice to sell up. Also, if children are involved then the home usually goes to whoever has custody of the children and that is nearly always the woman.

Of course, there are plenty of men who walk out on women and who then discover they have to sell up the family home as it is they only source of income.

Rather than try to think about the 'benefits' of divorce to any housing crash try and think about the misery, hurt and pain that a recession and housing crash will bring to tens of thousands of people via divorce in the coming years. Some will end up committing suicide. I don't think we should take any joy in divorce.

See my previous post on this.Foolish greed or pride will add to this misery for those who have to have the house to "win".
www.mensdivorcedoctor.com

I seem to remember reading that the numbers of divorces go up when the finances are good - it's easier to split, as both parties have the potential to be "OK" financially. When times are tough, people often hang in there, as there's even worse ahead if they split up.

Having said that however, possibly this time, it's different (it's the first time I've written that in HPC!) With the potential for people having hidden financial problems from their other halves more than ever, I could see that maybe there will be cases where it's financially better to gain distance from the party that is irresponsible with cash/debts/etc.

Mr W&S and I recently started wondering about what will happen when people who are having affairs start to feel the pinch - presumably there will be less cash to splash on the mistress/toy boy. It struck us that "going to the gym" is a perfect excuse - regular commitment, and a reason to come back freshly showered - when you can't afford the gym membership (and I'm guessing that'll be one of the first things to go in people's belt tightening exercises - no pun intended), the affair would need to end too... (we were driving past the gym of an ex colleague, who is thought to be having an affair with another ex colleague)

To quote conifer - I'm not, (on the point of divorce!) don't worry!

I remember reading something a year or so ago, that high house prices were a big factor in some couples trying to stay together. Once the equity was divided it was not a good enough deposit for a place of their own.



I have a friend who is about to divorce her philandering husband. He has a healthy final salary pension to offset against his share of the equity (house nearly owned outright). I've advised her to hang fire on any financial settlement, as the value of his asset (the pension) will not drop, but the equity in the house will. She could get very lucky out of a HPC, and not have to increase the mortgage to keep the house. Good job the b*st**d doesn't have a money purchase pension plan.

Obviously, he's a toe-rag, but he may have had reasons for his "philandering" - not getting any for example!

blimey this is an old thread

I don't pry that far into my friends relationships with their husbands. However the first thing she did was get herself to the doctors to check she hadn't caught anything - so I figure he was getting something!

The statistics make really grim reading...

Statistics from the Great Depression*

+ Marriage........... : -15%
+ Divorce............. : -25%
+ GNP................. : -50%
+ DJIA................. : -90%

*(from a Q-line call on FS, xx jan. 2008: about 34 minutes in)