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The divorce rate in the U.S. fell 4% last year, according to a report released last week by the National Marriage Project. The news might cheer family advocates, but the lousy housing market is probably the cause, as couples with depreciated home values wait to split until the market rebounds.
Right now, home values are down substantially. According to Moody’s Economy.com, 31.8% of owners with a first mortgage currently owe more than their house is worth. Couples who decide to get divorced are splitting liabilities instead of assets.
“It used to be that couples fought over the house because of continuity and stability for the children,” says Fadi Baradihi, president of the Institute for Divorce Financial Analysts. “That’s not happening anymore. Now everybody wants to run from it.”
Source: WSJ
