Can the Economy Affect Your Divorce Decisions?
A changing economy can shape your divorce decision, from how you divide assets to whether you move forward now or wait for more stable financial times. Recognizing what you are comfortable with and working together outside of court often leads to better outcomes.
When you think about divorce, you might focus on emotional or family issues, but the state of the economy can play a surprisingly big role in your decision and your settlement. Whether you are looking at risky investments, stable real estate, or just wondering if now is the right time, understanding how economic conditions influence divorce can help you make smarter choices.
How the Market Shapes Asset Division
In a strong economy, people often feel confident taking risks with assets such as stocks and bonds. When the market is uncertain or declining, it is harder to predict the value of investments. If you and your spouse are dividing assets, you might look at two things with the same dollar value, such as a house with two hundred thousand dollars in equity and a two hundred thousand dollar investment account, but they do not carry the same level of risk.
In a settlement you negotiate yourselves, you can account for these differences. One spouse may choose more stable assets like real estate, while the other takes riskier investments. In court, however, a judge typically divides assets based on their value at a single point in time, without focusing on how stable or unpredictable they might be later.
Should a Bad Economy Delay Divorce?
It is common for couples to put off divorce during a financial downturn. When the market drops or family income shrinks, some couples decide they simply cannot afford to divorce right away. You might choose to continue living together, even if you live separately within the home, or you might have one spouse move in with family for a while.
Some couples create a postnuptial agreement that addresses financial and parenting arrangements until they are ready to move forward with a divorce. In certain cases, delaying divorce can provide practical benefits, such as keeping one spouse on the other’s health insurance or allowing time for assets to regain their value.
Making Decisions That Reflect Your Needs
If you and your spouse are able to communicate and work together, you can reach agreements that a court would not usually allow. For example, you might divide assets in a way that fits each person’s comfort with risk or agree to delay the divorce to handle outside challenges, such as rebuilding finances after a natural disaster. Negotiating out of court gives you the power to create solutions that meet your specific needs.
Contact the Law Offices of Robert J. Merlin
If you are unsure whether this is the right time for divorce, the Law Offices of Robert J. Merlin can help you understand your choices. We work closely with couples to find thoughtful and respectful solutions that fit their unique situations. Contact Robert J. Merlin at (305) 448-1555 to schedule a consultation and learn how we can assist you in moving forward with confidence.
The Law Offices of Robert J. Merlin, P.A. are located at 250 Catalonia Avenue, Suite 706, Coral Gables, FL 33134.
Bob Merlin is a Florida Bar Board Certified Family Law Specialist, he practices in the areas of divorce, time-sharing of children and parenting plans, child support, alimony, paternity, pre-nuptial and post-nuptial agreements, and cohabitation/partnership agreements.
As an experienced Collaborative attorney, Bob continually hones his skills in the Collaborative Process and trains other professionals how to become a Collaborative professional as he is.
“My goal is to help divorcing and other family law clients make well-informed decisions so they experience a more efficient process and feel more in control over their futures.”
