Recession Divorce

Monday, May 25th, 2009

Cost effective legal divorce is now a welcome path for those people who wish to end their marriages. The stalled housing market, increased unemployment, and deepening recession have negatively impacted the financial situations of most parties. In fact, high mortgages and declining values caused many homes of divorcing couples to stay “under water.”

In addition, even those divorcing couples who are still fortunate to have home equity cannot sell the houses due to a slow real estate market. If you combine these with plummeting real estate values, you will be looking at a bleak marital asset balance sheet.

Historically, divorce rates tend to increase during recession. But attorneys today still see a decline, maybe due to a severe economic downturn. For those with limited resources, it might be overwhelming to incur expenses for two households. On the other hand, net-worth clients may take advantage of diminished values of their properties to decrease financial responsibility.

And to look on the bright side, there are other support alternatives and marital asset division that attorneys can do to help the divorce resolution. Probably, a neutral financial planner can find solutions for custody issues or parenting coordination.

Although some cases would really need to go through litigation, there are other options that the parties could attempt to utilize. These alternative resolution methods may be in the form of a collaborative law model or mediation.

Tags: attorneys, collaborative law model, cost effective, custody, Divorce, divorce rates, divorcing couples, litigation, mediation, parenting coordination
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