Divorce in a Bad Economy
Conventional wisdom says that divorce rates increase as the economy decreases. The reason for this is simple: Some couples who were staying together because the money was good are finding themselves arguing more about their finances and finding fewer reasons to stay together; other couples are simply pushed to the edge by economic stresses. But in the current bad economy, the opposite is actually occurring. More couples who were considering divorce are deciding to stick it out, either in hopes that the economy will soon recover or that their relationships will.
The most valuable asset owned by the majority of couples was the family home. But for many, the family home has become a financial detriment rather than a valuable asset. Michigan currently has one of the highest rates of foreclosures in the country. Currently, the rate of foreclosures does not seem to be changing much. The majority of homes have lost a substantial amount of equity.
Other assets typically owned by married couples also are likely to have lost value, including retirement accounts and other real property.
The economy also presents a particular challenge to spouses who have decided to stay home and take care of their families or who only work part time. With the current national unemployment rate hovering near 10% and Michigan's unemployment rate around 13%, spouses seeking to re-enter the work force will find it difficult to secure a job with which they can support themselves.
Even though the economy is making it difficult for some couples to succeed financially on their own, money should never be the deciding factor for staying in a marriage. Options are available to those who want to get divorced; there are ways to make it work, even on a reduced income. For some, individual or joint bankruptcy may be the best option. For others, sitting down with a financial planner may help ease some of their concerns.
If you have questions concerning your Michigan divorce, contact an experienced Oakland County family law lawyer at 248-540-0677.
