01/29/2026
As if there wasn't already enough to consider when thinking about divorce or legal separation, the housing market (and, more generally, the economy) can have a big impact on the divorce itself and the post-divorce transition.
Last week a client sent us the appraised value of her home. It was about $100,000 less than the price they paid when they bought it a few years ago. The realtor advised that this will probably drop more in the next few months as certain sectors of the housing market have stagnated as the number of sellers continues to exceed the number of buyers.
So what does this mean for you? Well, marital property is divided during divorce and legal separation. And real estate is typically the most significant component of that.
Right now, as many property values decline, roughly 1 out of every 6 sales contract was canceled by buyers in December. This means that even when you find a buyer and agree to a purchase price, it's far from certain that the transaction will close. This uncertainty makes mediation and collaborative divorce more appealing as both processes provided far greater control over the outcomes.
Buyers canceled agreements to purchase homes at the highest rate ever in December, adding to evidence that the housing market is off-kilter.