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Foreclosures Causing More Divorces?

Foreclosures Causing More Divorces?

The financial pressure that comes with an escalating house payment or a foreclosure may indeed be playing a role in breaking up marriages, experts say.

Historically, the three most likely reasons for foreclosure problems are: loss of job, loss of health and loss of spouse. On top of that, these days, escalating mortgage payments seem to be exacerbating the divorce problem.

Though there are no studies linking foreclosure to divorce rates, Frank Fincham, the director of Florida State University's Family Institute, said, "Financial problems among couples are one of the main reasons for divorce in this country today." One recent poll commissioned by divorce360.com ranked financial issues as the No. 2 reason that Americans divorce, with abuse ranked as No. 1.

For years, Middle America was of the mindset that it could get a divorce and use the equity in their home as a safety net, but for many these days, there is no equity. It used to be, when couples bought a house, five years later it was worth more. And when people got divorced in those days they expected to be able to live for a while off the proceeds from the sale of the house. . . . We do have a lot of people in trouble in this country because the value of their house decreased.

What do you think? Give us your opinion. Has the mortgage crisis and more resulting foreclosures, had anything to do with an increase in divorce rates? Use the comment link below to give us your feedback.

Posted by David Wiggins on 04/30/2008 12:23 AM

Comments (13)

financial, foreclosure, mortgage

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13 Comments on Foreclosures Causing More Divorces?

APR

2008

Any factor which adds this degree of financial stress to this many American households is bound to cause problems. The foreclosure crisis and lack of liquidity in housing is harmful to families.

It might be true, don't know. But for sure if a couple is not doing well then a foreclosure does not help, and a foreclosure does not help a couple stay good. So perhaps its a chicken and egg situation.

I believe that it is a big contributing factor in divorces especially if one or the other spouse was against the the real estate purchase in the first place

I could see how a financial burden like a foreclosure could leave to a divorce. When it comes to hard times with money the stress could be a factor that could lead to bad times in a relationship.

In my relationship, Our income has been cut in half and we have pulled closer rather than apart. I think a lot of couples put too much impotance on money. If your relationship has a problem money will fix,you probabley didn'i have a good one anyway.

Interesting... I hadn't thought about foreclosures affecting the divorce rate, but this whole ordeal has affected us all in so many ways...a lot more than we ever imagined.

I'm a loan signing agent in California and handle loan document closings. I recently had to notarize a quitclaim deed. A husband and wife were refinancing and they were going through a divorce.

Greg ~ Although I'm not glad to hear you're income is less, I am happy to hear it's pulled you closer together in your relationship. I pray other couples will be brought closer together as well, rather than pulled apart.

Denise O'Dell

Im sure that loosing a home would be enough to stress a relationship to divorce. It doesnt take much now a days to file anyhow. Our system makes it way to easy to get in and OUT.

MAY

2008

I believe that foreclosures and financial issues can quickly strain a relationship.

AUG

As a Certified Divorce Financial Analyst, I see this becoming more of a problem with my clients. Because there are very few statistics kept on these issues we don't really have a true picture on the correlation. It's like the proverbial chicken or egg story wondering which came first, the divorce or the foreclosure? Or how much of each contributed together? It's pretty obvious to anyone watching that marriages are another casualty in the foreclosure crisis.

JAN

I believe the economic situation in general contributes greatly to the divorce rate. It appears to me that couples in financial distress are doing the exact opposite of what they once promised each other "...in good times as well as in bad times...".

MAR

Divorce even effects those in our industry due to the harder economic times. I myself am seeing my nine year marriage disolving due to the strain on finances and stress levels.

MAR

With a 50% divorce rate, I see one more thing couples are unhappy or concerned about..the credit crunch and in some case unemployment. But most of my dealings locally have seen it pull folks together to work harder, save, budget, and be creative to come up with low cost family entertainment. Usually if a person is unhappy in their marriage, during listings I learn they are not happy with their job, their kids are driving them nuts and they are plain all around unhappy. It spills over so worries about making the mortage payment and buying groceries adds to the strain. New prince charming or Cinderella though is not going to fix it..new and different but same old problems surface after the newness because each mate has a role. Sorry to hear about your situation Lee.

JUN

Hi,

Its funny to hear this kind of scenery "for better or worse till death do us part" but who knows what lies ahead. The only thing that is constant in this world is CHANGE. Foreclosure is very rampant and true that it causes a lot of problems. I have read some articles and it gave me options if worst come to worst not to fall in <a href="http://foreclosurehelpscams.com">Foreclosure Help Scams </a>.

Scott

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