A recent CNNMoney.com article highlights one of the more challenging parts of going through a divorce in a down economy. According to a study, nearly 25% of homes are "underwater" in the United States. In Florida, the number of homes where the value of the property is less than the value owed is 48%!
In the boom times of only a few years ago, most parties were dividing equity in their marital home as part of property division in a Florida divorce. With the recent downturn, parties going through a divorce can no longer expect to have a great deal of equity to divide between themselves. This presents an especially challenging problem when both parties are listed on the mortgage, and one party wants to stay in the home. Because of the lack of equity in real property and tightened rules regarding credit, parties are finding it increasingly difficult to refinance and remove their former spouse from their home obligation.