Boom or Bust: Does the Economy Affect Divorce Decisions?~ 3 min read

The economy can influence many aspects of your divorce, from whether you decide to file, to how you divide assets, handle support, or even afford legal costs. A downturn may push some couples toward faster settlements, while others face new financial pressures that make divorce harder to manage. An amicable divorce, Collaborative Divorce, or Mediation may offer more flexible solutions in a changing economy.

The State of the Economy Can Shape Your Choices

When the economy takes a downturn, it affects more than your wallet. It can also impact your marriage and your decision to divorce. For some couples, financial stress increases the strain at home, which leads to more people reaching out to lawyers. Others may delay filing, either because they are trying to avoid the costs or they simply cannot afford to live separately.

Even those who do move forward with divorce may make different choices depending on what they can afford. You may be more open to compromise if you know that a long court battle is out of reach financially. However, that willingness can shift if someone has access to outside funds from family or another source.

Fewer Assets and Higher Costs Affect Division

If the market is down or interest rates are high, it may be harder to refinance your house or divide your investment accounts. You might have fewer retirement assets to split than you expected. And if one spouse works on commission or has variable income, they may be in a very different financial position this year compared to last.

Unfortunately, the court may still use prior financial records, especially if income averaged higher in the past. That can make child support and maintenance orders feel unfair. An amicable divorce, Collaborative Divorce, or Mediation give you the option to consider your current situation and make adjustments that better reflect your reality.

Trial May Not Be Worth the Cost

Many couples think they want to fight all the way through trial. But once they see the cost, especially during an economic downturn, they often give up at the last minute. You may not be able to afford expert witnesses or financial analysts. Instead of dragging the process out, you may benefit from starting with a process like Mediation or Collaborative Divorce that encourages an amicable resolution and early cooperation.

Working Together Saves Money and Stress

If you and your spouse can talk through your issues and stay focused on long-term outcomes, you are more likely to make choices that work. In an unstable economy, spending thousands of dollars on court battles can make your situation worse. Mediation and Collaborative Divorce give you a way to work through financial pressure with more flexibility and fewer surprises.

Talk with Family Ally About Your Options

At Family Ally, we understand how financial pressure can affect your family and your future. If you are thinking about divorce, let’s talk about how the current economy could shape your decisions. We can help you explore practical options, including Collaborative Divorce and Mediation, that allow you to move forward with stability. Contact Jennifer Piper at 314-449-9800 to schedule a consultation and take the next step toward a solution that works for you and your family.

Family Ally is located at 130 S. Bemiston Ave., Suite 608, St. Louis, MO 63105.