You would be inclined to believe that as money becomes less of a concern due to a recovering economy, divorce rates would be dropping. However, studies have been showing that isn’t the case at all. According to a Feb. 6 report from California, the rebound in the economy is actually resulting in more divorces, since people can afford to get them.
Even for those with high-asset divorces, the time it takes to complete filings and to permanently separate can be extensive. According to the news, a divorce can be expensive, with court costs, attorney fees and other charges. Couples who might have been struggling before may now have the assets to move forward with their divorces.
It may have been that even those with money have had to take a step back and wait for the economy to recover before making any rash moves. A study that will be published in the future has found that fewer people divorced during the recession than before, and that could be due to wanting to wait until extra money was available. Additionally, money and finances are often a cause for tension in a relationship, and that can lead to divorces following an extended recession like the one that struck the U.S.
So, why are divorced on the rise in California? People essentially have more high-asset divorces now, because 401Ks, home prices and stock values have increased. In California, divorces can result in 50/50 splits of assets, so the rise or fall of wealth can be a major factor across the board. The story claims that divorces of any type can be extensive and financially draining, with some moving as quickly as 60 days, while others take as long as two years to complete.
Source: RTV6, “Study shows divorce cases are up as economy recovers” Carlos Correa, Feb. 06, 2014