Economic Downturn and Divorce

A plunge in the net worth of your spouse may indefinitely postpone the "break-up" decision from being made any time in the near future. An increased chance of wading through the trauma, drama and financial torture of a divorce is apparently not the top thing on many "to do" lists.

Is it a benefit in this downer of an economy to remain together?

Issues that according to experts, typically destroy a relationship: fights over money, sex and children have a pretty good chance to increase in this current climate. So, will people hold tight to what they have, afraid of the unknown? Tethered to a situation that is draining them mentally and emotionally? Or will they decide that no matter what their financial situation is that they'll cut their losses and bolt for a different life?

What is clear is that today's tough times are affecting how divorces are being handled.

Take the housing market now, in some places prices have dropped about 40%, so who wants the house now? Now people are fighting over who has to TAKE the house.

People laid off from jobs have trouble paying child support. And some are divorcing and continuing to live together afterwards, because they can't afford two residences. Your "newly" ex-spouse as your roommate, good times!

What retirement funds? Credit card debt, anyone? The list goes on...

And some people are going through their divorce without attorney representation.

By the time couples come to us, they've pretty much run out of options.

Whether you can financially afford to get divorced now, you should still meet with an attorney and find out what legal options are available to you. When seeking a divorce, work with a financial advisor or a trusted 3rd party with the skills to make the best of your existing financial situation.

Keep in mind that it pays to know what you want and be willing to compromise ahead of time, prior to filing for divorce. Otherwise, divorces can be very expensive. And divorces in bad times tend to be uglier than divorces in good times.

According to calculations based on census data by the Web site Divorce360, a contested proceeding that goes to court, for a couple with at least one child can expect a divorce to cost anywhere from $53,000 to $188,000. The cost range does include attorneys’ fees, financial advice, counseling and real-estate costs for buying or renting separate homes.

Remember, if you are considering a divorce, the long-term cost of failing to seek competent legal advice can be much worse than a relatively inexpensive short-term cost of having an effective attorney representing you.

Please call or email us, we are here to help: cgreene@rrjlaw.com or 626.683.8869