Recovering economy could play role rising divorce rate
The improving economy has brought renewed financial hope not only to California residents but also to people across the country. And along with economic recovery comes the financial flexibility that will allow more couples to divorce now, perhpas after a few years of putting it off because it simply would create too much financial hardship.
According to one divorce expert, many couples probably remained together, despite their wishes to split, in order to stay afloat during the worst financial times in several decades. Often this was because one or both spouses were unemployed or because the couple was already having trouble making mortgage payments or certainly would if they went through with a divorce. Typically, before the recession, a house would be the largest asset to undergo property division; during the economic downturn, however, couples had fewer assets, which would mean larger financial losses and even more strained resources after divorce.
Research across North America and in Britain seems to confirm that divorce rates fell as the housing market collapsed and the economy headed south. Now, as the economy rebounds and housing prices increase, couples can afford to divorce and take advantage of the increased value of their homes.
Even though the surging economy means marital dissolution will have less financial impact, it certainly does not mean that one or both parties will not have to learn to live with less income. The financial issues, however, are less likely to predominate so that couples can focus on other perhaps more important long-term issues such as child custody, child support and spousal support.
Whether the correlation between divorce rates and the economy holds over the next decade, divorce is certain to have a financial impact in a household.
Source: Los Angeles Times, “Divorces increase as improving economy makes split-ups affordable,” Stuart Pfeifer, Sept. 18, 2013