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Breaking up is hard (and expensive to do): Divorce is a key driver of the real estate market

by Marquette Turner

in Money & Business, Real Estate Radar

Break-ups among married and de facto couples account for up to 15 per cent of all residential sales, with one Sydney agent recently claiming that the figure was closer to 40 per cent, with every second client selling because of divorce.

Many agency’s are now having many requests for initial consultation and negotiation valuations between separating partners and requests for full Family Law Court valuations in preparation for trial.

Most frequently the scenario is that one party wishes to leave the home and the other wants to stay, but doesn’t have the finance to buy the other one out, or isn’t speaking to the other person to discuss their options.’

Breaking-up could prove costly for those who married in a boom and separated in a bust.

Things like interest rate rises put pressure on people and they end up in a position of disposing of their assets at a bad time. It ends up costing them a lot of money in the long run.

This is frequently a vicious cycle as financial pressures are one of the biggest causes of marriage breakups.

Australia has one of the highest divorce rates in the world, topped only by the US and Britain.
According to a recent Australian Institute of Family Studies report, divorce or separation affected nearly 50 per cent of marriages in Australia.

More women (40 per cent) than men (29.5 per cent) lodged applications for divorce in 2006.

Simon Turner

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