Divorcing in a Tough Economy
Nobody wants to end a marriage. Even in the best of times, when the economy is good and both spouses are cooperating, divorce is still tough. So right now, in the later half of 2023, a divorce would be tough.
Unless you have been living under a rock, you know that the economy is not great. The prices of food, gas, and everything else has doubled or tripled. Things have shifted to where employers now have the upper hand with jobs, and many are requiring workers to return to the office. This is causing a lot of stress, with workers having to make tough decisions. While quitting may have once been an option, with divorce looming, many workers are forced to stay in undesirable positions.
The 2023 economy has also caused fluctuations in the stock market and reductions in home prices. If you and your spouse are budgeting and struggling to survive as it is, imagine the damage a divorce could do to your finances. The economy could make things especially difficult when it comes to splitting assets.
Divorces nowadays are going to require creativity and patience. Divorce attorneys, real estate brokers, and accountants say you need to have a strategy in place, along with a little flexibility. Here are some things to keep in mind when divorcing in a tough economy.
Selling a House
Your entire net worth may be tied up in your home. However, property has been falling in value in some parts of the United States. Ideally, you will be able to hang onto your home until the market gets better. If you must sell right away, build provisions into your separation agreement that detail when to reduce the selling price of the home and by how much. Keep in mind that time is of the essence. A speedy sale is preferable – even if you have to sell at a slightly lower price – since divorce proceedings tend to get more contentious as they drag on.
Valuing Retirement Assets
Many assets, such as stocks and bonds, were worth more a few years ago. It can be heartbreaking to have to split them or sell them when values are low. Even if you had a retirement account before marriage, it could still be treated as marital property. There is a lot of uncertainty with these types of assets, so determine their values and sell them now before they become worth even less.
Consider the Effects of Inflation
Inflation may have postponed divorce for many couples. Rising prices affect pretty much everything, though. There’s no way around it, but there’s something you can do. Add a cost-of-living provision to your divorce settlement so that it ties what you pay or receive (such as child support and alimony) to the Consumer Price Index.
Seek Legal Help
August is a common time to divorce, but in this economy, a divorce can be even harder than usual. Couples will face a lot of financial strain.
Fort Lauderdale divorce lawyer Edward J. Jennings, P.A. can help you get through the financial stress you will likely face in a divorce. Get the outcome you desire. Schedule a consultation today by calling 954-764-4330 or filling out the online form.