Recessions can take anyone by surprise. Many different economists have been predicting a recession for months now, though whether it is for a long or a short downturn, and when exactly it may fall upon us, is entirely up for debate. This is the cyclical nature of the economy. Although 2023 may be a challenging in various ways, your main challenge could be controlling your fear.
In my book, Divorce: It’s All About Control. How to Win the Emotional, Psychological and Legal Wars, I underscore just that: control. A spouse who can control their anxiety, even in financially stressful times, can control the outcome of their divorce. This mindset is key to avoiding long-term emotional damage and will help you (ideally sooner rather than later) move on in a positive light.
The Many Effects of an Economic Downturn on Divorce
If any spouse is considering a divorce in a potentially harsh economy, they must look at their specific situation to determine if they should proceed with a divorce or wait until better economic times return. 2020 was the last significant economic downturn we experienced. Many Americans became unemployed or underemployed. However, divorcing in a weak economy could mean fewer assets for couples to divide. It could also mean you could pay less in spousal support, also known as alimony, or child support because your income has diminished. You could also buy out your spouse’s interest in an asset for a small fraction of what that asset would be worth in a healthier economy. The flipside is also true – you could receive lower spousal and child support than you otherwise would, and you could receive far less in an asset buyout than you would in a healthier economy. There is certainly no definitive circumstance. How the economy affects your potential divorce is entirely unique to you. There is no model template to know when the best time is to file for divorce. The wisest thing you can do is to talk with an experienced attorney.Continue reading