Link Between Inflation And Divorce
You’ve probably noticed that the economy is crazy right now. Prices have gone up for pretty much everything, most significantly for gas and food. Prices for housing and vehicles are also off the hook.
Inflation is super high right now. In fact, we’re seeing the highest inflation rates in the past 40 years. The increase in prices has made it hard to live comfortably. So how have they affected divorce rates?
While money struggles often lead to divorce, the surprising truth is that high levels of inflation actually keep marriages together. That’s because couples are trying to save money right now and a divorce is certainly not the way to achieve that. So married couples are looking for alternatives to divorce.
Studies show that when a major nationwide financial trauma occurs, such as inflation, people tend to stay committed to their marriages. The higher inflation rises, the more stable marriages become. This may be confusing considering that financial issues tend to place additional stress on marriages, causing conflict and instability. For some people, though, money problems make couples more appreciative of their spouses and other family members.
This is what happened in 1980, which was the last time that inflation was this high. Unemployment rates were sky-high, rising to double digits as interest rates skyrocketed to above 20%. These factors made it hard for couples to file for divorce; they could not afford it. This caused divorce rates to drop, which was the first time this had happened since the 1960s, when no-fault divorce became legal.
The last time a financial crisis occurred in the United States was in 2008, lasting until mid-2009. Tens of millions of people lost their jobs. A real estate crash caused home prices to decline, leading to mortgage delinquencies and foreclosures.
It was predicted that divorce rates would spike. But they didn’t. In fact, they actually declined, going from 20.9 per 1,000 married women in 2008 to 19.5 in 2009.
However, it’s possible that inflation affects couples differently, as inflation and monetary policy are complex things. It’s possible that economic status may be a factor. For example, high food and energy prices impact lower income families much more than they do high income families. However, asset price inflation, which refers to the increase of stock and housing prices, tends to positively impact higher income families since they own more assets.
Overall, marital commitment tends to be a comforting factor when households experience declines in income. In fact, research shows that marital commitments are even strengthened during tough economic times. What this means is that the economy may be good for your marriage.
Seek Legal Help
Finances impact divorce. While many couples split over money matters, high rates of inflation can actually keep people married.
However, if divorce is on your mind, seek legal help from Fort Lauderdale divorce lawyer Edward J. Jennings, P.A. We’re here for you with dedicated and effective representation. Call 954-764-4330 or fill out the online form to schedule a consultation today.