Few of our posts have focused on the economic implications of divorce. After all, the recession likely contributed to the historic drop in divorces. According to the National Center for Health Statistics, divorces hit a 40-year low in 2009 (the height of the recession). However, as the economy has improved, the number of divorces has increased.
According to U.S Census Bureau data, the number of people getting divorced in the U.S. rose for the third year in a row. More than 2 million couples called it quits in 2012. There are economic and emotional implications to this trend. Essentially, as people in troubled marriages have economic mobility, they are more likely to move on from such relationships. Moody’s Analytics analyst Mark Zandi explained to Bloomberg News that as the economy normalizes, family dynamics do the same.
It also suggests that there is a symbiotic relationship between the economy and divorce rates. As divorces increase, there is an increased need for housing and home appliances such as microwaves, ranges and washing machines. In fact, the increase in divorces can also be linked to the increase in home construction as many non-custodial parents look for apartments and townhomes to stay close to children.
Divorce also prompts people who were previously stay-at-home parents to enter the work force. This also contributes to the drop in the unemployment rate. All this means that when couples decide to move on from their marriages, it is important to have an experienced family law attorney available to deal with the economic and legal issues that will come about.
Source: Bloomberg.com “Worsening U.S. divorce rate points to improving economy,” Steve Matthews, Feb. 18, 2014