The Divorce Season

January is the month that I get the most calls from people who have decided to get a divorce.  I don't think that more people get divorced in January but it seems to be the month when the decision to get a divorce is made.  They want to know how much their home is worth and how quickly I can sell it.

According to multiple sources the divorce rate has been lower than usual the last couple of years because of the economy.  Last year I met some couples who stayed together because they didn't have enough equity in their home to sell it and in most cases it took two of them to make the payment. There are people I know who would like to split up but who are staying together for financial reasons.

For the people who do decide to get a divorce and move on there are some pitfalls.  I have seen a pattern in my business especially when dealing with people who are in he baby boom generation.  They decide to get a divorce and then they start looking at downtown condos.  After that they look in the Crocus Hill and Summit avenue area. Every January like clock work I work with at least one person going through a divorce who goes through this house hunting process.

Some end up buying condos in these areas and for others it seems to be a kind of stage that they need to go through.  It is a huge life style change to go from a larger home to a small loft type unit downtown.

I wrote a post a couple of years ago about the rebound condo it is based on an experience with a friend who got divorced and then bought a small condo.  She was very unhappy with her choice and regretted buying it.  I guess from my point of view it seems like it might be wise to stay put for a while after a divorce. Maybe rent for a year and then move on. Buying any kind of a home is a huge decision and I am not all that sure that most people are capable of making the right decision as they are going through the emotional upheaval of the ending of a long term relationship. 

Another pattern I see in all of this is the accumulation of stuff.  As the soon to be divorced try to scale down and live separately in smaller places they always have one or two huge pieces of furniture that they need to accommodate.  As someone who has some stuff of my own I have to say that it might be best to sell some of the stuff.  All of that stuff greatly increases the need for living space and more living space means higher monthly payments.

There is no easy way to do all of this I am sure.  If you are reading this and going through the process your self all I can say is that you are not alone and there are no easy answers. Just don't make any hasty decisions that you will regret later.  It isn't as easy to sell real estate as it used to be and buying the wrong piece of real estate is a problem that can take years to resolve.