Published: 2009-12-18
Article provided by Bishop Law Office
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Conventional wisdom says that divorce rates increase as the economy decreases. The reason for this is simple: Some couples who were staying together because the money was good are finding themselves arguing more about their finances and finding fewer reasons to stay together; other couples are simply pushed to the edge by economic stresses.
But in the current bad economy, the opposite is actually occurring. More couples who were considering divorce are deciding to stick it out, either in hopes that the economy will soon recover or that their relationships will.
Couples Who Are Choosing to Stay Together - At Least for Now
Estranged spouses in today's economy are finding divorce a less desirable choice for many reasons, and the chief motivator is money. Husbands and wives are deciding that they literally cannot afford to live on a single income. Once spouses begin taking a hard look at their finances and the assets they must split, many are finding that only debt would remain.
The most valuable asset owned by the majority of couples is the family home. But for many, the family home has become a financial detriment rather than a valuable asset. Arizona currently has one of the highest rates of foreclosures in the country, second only to Nevada. Even though some are forecasting that the foreclosure rates in Arizona are finally leveling off, this is of little comfort to those who are in danger of losing their homes. Others are finding themselves upside down in their mortgages, owing more on the loan than their home is worth - a predicament shared by thousands across the country.
The question therefore becomes what to do with the home if the couple divorces. Who keeps the home? Who makes the payments? Should the couple allow the bank to foreclose, or try to sell it on their own? Many decide to avoid making this difficult decision by staying together and remaining in the house.
Other assets typically owned by married couples also are likely to have lost value, including retirement accounts and other real property.
The economy also presents a particular challenge to spouses who have decided to stay home and take care of their families or who only work part time. With the current national unemployment rate hovering near 10% and Arizona's around 9%, spouses seeking to re-enter the work force after divorce may find it difficult to secure a job with which they can support themselves.
Arizona Property Division Laws and Divorce
Arizona's community property laws also can make it more complicated for some spouses to get divorced. Under the state's community property laws, generally any income earned during a marriage is considered community property subject to equitable distribution. On the other hand, property owned before the marriage (and any profits from or increase in value of that property) generally remains separate property and is not subject to distribution at divorce.
There are, however, situations in which separately owned property can become community property. Determining which property is separate, which property is community and how to divide it between the spouses is why property division is one of the most complicated and contested issues in a divorce.
Finding a Way
As attorney William Bishop tells the Arizona Republic in a recent article, "Most people, if they want a divorce, they're going to find a way to get a divorce."
Indeed, it is still possible to go through a divorce that involves division of significant debt. "It's a lot easier to divide an asset than a debt," says Bishop in the article. But with "creative thinking," it is possible to get through the divorce process.
Conclusion
Even though the economy is making it difficult for some couples to succeed financially on their own, money should never be the deciding factor for staying in a marriage. Options are available to those who want to get divorced; there are ways to make it work, even on a reduced income. For some, individual or joint bankruptcy may be the best option. For others, sitting down with a financial planner may help ease some of their concerns.
An experienced attorney can discuss the options with those who find that a broken marriage is a broken marriage, no matter what the state of the economy.
