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I have some friends that are diicnovrg, but stuck living together due to a divorce. They bought the house July 2007 and, in my opinion, over paid even at the peak. It sounds completely miserable to me. Marital debts are community property, so I believe they're split down the middle along with assets. I suppose one person could forgo other cash (401k for instance) to be free of the negative equity. But here's the kicker .To get someone's name off the home mortgage, you have to refinance. And with no equity, there's no refi. So even if one person wants to stay in the house and wait for the market to rebound, they can't unless the other party is stupid to keep their name on the mortgage. I really feel for anyone in that situation. Rate this comment: 0 0