When you come to the unfortunate realization that your marriage is going to end, you may want to consider multiple options and eventualities before deciding to move forward with the divorce. One potential influence you may never have thought about considering is the current state of the economy, which can have a surprising influence on your divorce settlement, particularly the financial elements. A Lincoln, NE divorce lawyer can provide you with more information.
For many divorces, both spouses may stand to lose a lot more than they’d hoped. After alimony, child support, and an equitable division of assets, you may end up with a lot less income than you once had. Your reasons for seeking a divorce are your own, but it might be important for you to fully understand the financial ramifications of that decision before moving forward with it.
Can the Economy Really Affect Your Divorce?
The economy, whether it is a strong economy or a bad economy, can have a significant impact on divorce, affecting both the divorce rates and settlements. Economic downturns, job loss, housing market fluctuations, and even inflation can all influence whether couples choose to divorce and how assets are distributed when they do.
Divorce is not only an emotional or relational decision but should also be considered for the financial transaction that it is. Because courts consider income levels, employment status, and a couple’s assets when making decisions regarding the settlement, including alimony, child support, and property division, economic conditions can have a direct impact.
In fact, economic downturns, recessions, and periods of financial instability can cause some couples to delay divorcing for several reasons. For example, divorcing is expensive, and many may find the court fees, attorney costs, and individual living expenses too unaffordable.
Additionally, losing work or experiencing a reduction in income can impact alimony and child support payment arrangements. If couples own a home, it may be difficult to divide their assets effectively if they are unable to sell their home, or they may be stuck selling their home for a much lower value.
Ultimately, many couples end up staying together longer than they otherwise would out of necessity when their financial burdens, such as mortgages, debt, and childcare costs, are too great to handle alone. Sometimes, waiting for the economy to improve can lead to more favorable outcomes for one or both spouses when it comes to settlements and independence.
While it is seldom considered when it comes to divorcing, the state of the economy directly impacts divorce rates and settlements. If you are considering divorce but are unsure of how the current economy could impact that decision, it is important to speak with a knowledgeable divorce attorney who can walk you through your case.
The Advantages of a Divorce During a Bad Economy
Despite the impacts of getting divorced in a bad economy, it may result in certain advantages for you, depending on your circumstances. If you divorce during a bad economy and are ordered to pay settlement obligations, there is a chance that your alimony and/or child support payments will be significantly less. In a bad economy, you may have experienced a pay cut or salary decrease, and that will be reflected in your court-ordered spousal support payments.
Additionally, if one or both spouses are negatively impacted financially by the economy, they may have greater motivation to settle quickly in order to reduce the overall costs of divorcing. This could lead to more amicable settlements, a greater chance of an uncontested divorce, and potentially better outcomes as there is a greater financial incentive for couples to make compromises.
FAQs
Q: Do I Have to Tell People About My Divorce?
A: You don’t have to share anything with your friends, family, and colleagues that you don’t want to. If you’re not comfortable talking about your divorce, feel free to keep it to yourself. It is recommended that you get ahead of the gossip and be honest with the people close to you since they are going to find out eventually. Don’t feel pressured to share anything about your personal life.
Q: When Should I Start Separating My Finances?
A: It is recommended that you start separating your finances from your spouse’s as soon as you decide to pursue a divorce. The longer you and your spouse maintain joint finances, the harder it can be to disentangle them. It may be easier to proceed with your case in court if you have separated your finances. You may want to consider opening a new bank account, closing any joint accounts, splitting the money, and dividing existing debt between yourselves.
Q: Is Getting a Divorce Worth It?
A: Whether or not a divorce is worth the cost is entirely subjective. Everybody’s needs in life are different. What you feel is right for you might not be right for someone else. If you feel that your relationship has run its course, you are unhappy, and you no longer trust your partner, you should seriously consider a divorce regardless of the personal and financial cost that ensues. You need to consider your own future and happiness.
Q: How Do I Know if the Economy Is Bad?
A: There are many different signs you can pay attention to that will tell you if the economy has gone bad. Some of these signs include rising unemployment rates, a serious drop in the stock market, a drop in housing prices, a significant increase in inflation, and even a decrease in consumer spending. When an economic downturn is imminent, you can start to tell fairly early on if you notice the signs.
Consider Divorce as a Lifeline
Getting divorced is a major life decision that only you will truly know if you need to make. If the economy is a significant factor in your life, it may be part of your decision-making process. An experienced divorce lawyer can help you determine if a divorce is going to work out for you in the long run. The legal team at Stange Law Firm can give you sound advice on what to do next.
