California being a community property state, the division of property resulting from a divorce can be pretty straight forward – if the parties are in agreement. But what happens when the home in question has lost significant value and is no longer an asset but a liability? What if the couple in question is upside down on their loan or in the process of allowing the home to be foreclosed on?

More and more situations like these are arising these days as the woes in the housing industry continue to drag on and ripple through the economy and society. In the best of times, a do-it-yourself divorce appeals to many, but the more complicated the situation or the more aggravating the economic influence, it makes sense to seek out professional help – attorney, CPA, Realtor, and etc.

I read a story a while back about a woman who couldn’t refinance her home and remove her former husband from the loan, because he was nice enough to pay the child support in cash. Fannie Mae and Freddie Mac won’t take your word for it, they want a paper trail.

The current real estate dynamics have created very challenging situations for many couples considering a divorce. Often times in a divorce, someone wants the house, but if the house is losing value, it can change the situation.

A divorce situation is often emotionally charged and may add unrealistic pressure to pricing the home too high in hopes of minimizing the financial impact of selling the home. But over pricing the home can cost more money in the long run and drag out the divorce proceedings.

And what about a situation where the home has to be sold for division of assets, but the one in the home does not want to cooperate? And who decides on which real estate agent to hire?

Divorce can be a very complicated affair. What makes the most sense is getting good advice and knowledge – in advance. As market conditions change, take the time every year to meet with your financial advisor, CPA or attorney to review how current conditions are affecting your personal situation. If you find yourself in a situation heading toward a divorce seek advice sooner than later from someone with expertise.

Deciding who gets the house or how we are going to go about selling it may not be as difficult as who gets the dog, but these days it can be more complicated than when the home was appreciating 10% a year.