LOSE YOUR HOME EQUIT AND STAY MARRIED?

Are there good coming out of  losing all your equity in your home? Perhaps as lower divorce rates and declining home price may have something in common.

A new study by the American Economic Review identifies a correlation between lower divorce rates and home price declines. According to Census data, the divorce rate fell to 46 percent in 2009 from 50 percent in 1996.

AER says couples are more likely to divorce when equity gains make it possible for them to put money down on separate homes. But a decrease in residential values and the high cost of divorce proceedings have prompted some couples to stay together.

So this could have an interesting message as couples stay together. It seems in the past it was to easy to divorce and sell the home use the equity to start over. I personally hope for many couples that this is an opportunity to work on their marriage and stay together.