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Should you divorce during the recession?

Just a few weeks ago, we wrote a blog post about divorcing in a difficult economy such as the one we are currently in. Specifically, we discussed a study reporting that for every 1 percent increase in the unemployment rate, the divorce rate decreases by 1 percent. This is likely because couples simply cannot afford to get a divorce, to pay the legal fees associated with it or to divide their household into two. You can visit our Las Vegas divorce blog post on that topic for more information.

However, in a recent article in the Huffington Post, family law attorney Joseph Cordell says that an economic recession or its aftermath may actually be a really good time to file for divorce. Many people get bogged down with thinking about all of the costs associated with divorce (such as those we listed above) and fail to see the bright side of being financially strapped.

If you are the party with more to lose in a divorce, there is a benefit to divorcing in a down economy. Simply, having assets that are worth less means that it will hurt less to give part or half of them up in a divorce.

In addition, if you are currently unemployed or underemployed, you may be ordered to pay less child support or alimony than you would if you were receiving a full salary. Today, most Nevada family court judges are hesitant to impute income to divorcing spouse. This means that they will no longer look at what they think you could be making and look only at what you are actually taking home each month, and base their support orders on that amount.

However, don’t forget that if your income eventually goes back up, your spouse could go back to court and seek a child support modification. But hopefully you will be in a better financial place by then and able to pay more to support your children.

Source: Huffington Post, “Divorce May Be a ‘Discretionary Purchase’,” Joseph E. Cordell, Dec. 26, 2011

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