Real-estate enabled divorce!

Aug 11, 2007 at 2:19 PM
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I really have no words for how stupid/tragic/depressing (pick a word you like) I find this concept described in this NYT Article. At the same time, I love how "economics" really do play a role in everything. This reminds me of the fun read Freakonomics!

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[this is good]

I know a home builder in Boston who is being killed by this maneuver. The wife purposely timed her unfriendly divorce at the peak of the real estate market. She was awarded $4M in cash and the family home. Husband got a dozen half finished $2-5M houses. Now the houses are all finished and on the market at good prices but none are selling. Since she took all of his working capital the $200K/mth carry is going to send him into personal bankruptcy. He has little hope of making it, some of the houses are already in foreclosure.

Wow, that really is a shame. I am sure there are multiple examples of this out there.

Real-estate enabled divorce!

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