Solano Real Estate Scene: Consider this when thinking of divorce amid Covid-19
If absence makes the heart grow fonder, what happens when you are stuck in your home all day with your spouse?
When the courts fully open, divorce filings are likely to surge, according to new reports. Here are just a few ideas about this subject from a guy who has been dealing with marital settlement agreements since Jimmy Carter was in office and a guy who had at one time 15 brothers and sisters, including in-laws.
First, unless there is spousal abuse going on or serious alcohol, drug or criminality happening, don’t do it. Stay together for the kids. Stay together for a better financial statement at retirement. Stay together because the grass may not be greener on the other side.
Rather than spend $50,000 on lawyer fees and court costs, build a she-shed or a man cave with the money. If he or she is driving you nuts and this stress and anxiety that we are all living with today has you feeling sick and depressed, go to a doctor or to church or take up golf.
Tons of my friends and family have had successful divorces but based on my 42 years on the job, staying together is better for most people financially. It’s about momentum, the magic of compound interest and the theory of decreasing responsibility.
If a couple is married for 25 years and then divorce, the momentum of their net worth growth is stunted. Most of one’s wealth is accumulated between the ages of 50 to 65 based on the theory of decreasing responsibility. The mortgage gets smaller and the kids become less dependent. The value of IRAs and 401(k)s can double or even triple from 50 to 65.
This story has nothing to do with moral judgment or my personal feelings about this subject. In fact, loan officers and Realtors often end up with two customers when divorce happens if the home gets sold and each buy a house.
I know a lot of 50- and 60-year-old people renting today who would be homeowners with a lot of equity if they just grinned and bared it during difficult times.
A final tip: Every time Mary told me to get the heck out over the past 41 years, I refused. Hang in there; Covid-19 will end soon.