How the Recession is Affecting Divorce

broke.jpgDivorce has declined over the past couple of years, due in large part to the recession and the adverse financial impact the bad economy has had on home value, prices and savings accounts. Couples who have found it hard to make ends meet for one household may find it virtually impossible to support two different homes. The ability to refinance a mortgage is also much more difficult, and selling a home in Florida’s dismal housing market is usually not a viable choice either.

So what is a couple that wants to divorce to do?

Financial experts suggest that planning ahead and being practical about financial divorce settlements is a must. Divorcing couples may need to either delay the divorce until the economy improves or agree to share in the losses that may be incurred with a financial settlement in a depressed economy.

If a couple is able to hold on to their assets until the economy improves, or split them in a way that will maintain their value, they should seek this type of solution. Cutting expenses to the bone will likely become a necessity for many couples seeking to divorce in a recession as well. Basically, financial experts agree that this may be a time to make decisions based on financial rather than emotional needs.