Divorce During a Recession – Tips for Thriving

As the world continues to navigate the aftermath of the COVID-19 pandemic, many people are wondering what the future holds for the economy. One question that has been on the minds of many is whether there will be a recession in 2023. While it is impossible to predict the future, many economists agree that an economic downturn is likely in the coming year.

So, what does this mean for people considering divorce during a recession? Going through a divorce is a challenging and emotional experience under any circumstance. Doing so during a recession can add extra stress and financial uncertainty.

If you are facing a divorce and are worried about how to navigate this burdensome process, here are some tips to help you get through it.

Preserve Your Assets with a Low Conflict Approach to Divorce

During a recession, there may be a decrease in income and an increase in expenses. It is important to consider the monetary impact of the divorce on both parties.

Taking a low conflict approach during divorce can help to preserve assets by reducing the financial strain and legal costs associated with prolonged litigation and contentious negotiations.

If you want to lessen the financial toll of divorce, consider working with a divorce attorney who specializes in less contentious approaches, such as collaborative divorce or amicable divorce. These approaches focus on mutually beneficial solutions, which can help you to resolve your divorce in a more peaceful and cost-effective manner.

Child Support and Alimony Payments May Be Affected

One important thing to keep in mind during a divorce is that child support and alimony payments are not guaranteed. If the paying spouse loses their job or experiences a significant decrease in income, these payments may be reduced or paused.

This can be especially concerning if you are financially dependent on your spouse and do not have your own income or assets to fall back on.

To protect yourself and ensure that you have a plan in place, it is important to consider your financial independence during the divorce process. This may involve seeking out new job opportunities, building up your own savings, or finding ways to generate income.

On the other hand, if you are the high earner in the marriage, divorce during a recession may actually work to your advantage. Both child support and alimony payments are typically based on the income of the high earner, so if your income has decreased due to the economic downturn, you may be able to negotiate a more reasonable rate of support.

It is important to keep in mind that the needs and best interests of the children and the lower-earning spouse will be considered when determining support payments. You should work with an experienced divorce attorney to ensure that your rights and interests are protected and that any support agreements are fair and reasonable.

Property Division During a Recession

In a divorce, property and assets are typically divided between the two parties in a way that is deemed fair and equitable. However, in a recession, the value of these assets may have decreased, making the division more complex.

For example, if you and your spouse own a home or investment property that has lost value due to the economic downturn, it may be difficult to determine an accurate value for the purpose of division.

It is important to carefully evaluate the value of all assets and make sure that the division is fair and equitable, considering the current economic climate and any changes in value that may have occurred. This may involve working with a financial expert or appraiser to determine the value of certain assets or negotiating a settlement that considers the potential for future changes in value.

Regardless of the approach you take, it is crucial to work with an experienced divorce attorney to ensure that your rights and interests are protected and that you receive a fair and reasonable settlement.

Take Care of Your Emotions

Divorce can be a stressful and emotional process under any circumstances, and the added stress of a recession can make it even harder. It is important to remember to practice self-care and seek support from friends, family, or a therapist if needed.

Taking a low conflict approach to divorce, such as using alternative dispute resolution methods like collaborative divorce or amicable divorce, can also help to minimize the emotional toll of the process. These approaches focus on finding mutually beneficial solutions and preserving relationships, which can help to reduce conflict and increase feelings of support and understanding.

So, if you are going through a divorce during a recession, be sure to take care of yourself and seek out the support and resources you need to get through it as smoothly as possible.

Choose An Attorney Who Takes a Holistic Approach

The divorce process can be complex and stressful, especially during a recession when financial and emotional considerations may be heightened. That is why it is so important to have a knowledgeable and experienced attorney to guide you through the process and protect your interests.

When choosing a divorce attorney, consider hiring one who takes a more holistic, client-centric approach to family law rather than a contentious approach. This means that they will consider not only your legal needs, but also your emotional and financial well-being.

An attorney who takes this approach may be more likely to help you come out better off financially and emotionally, as they will work with you to find solutions that meet your needs and goals, instead of steering you towards expensive litigation.

Conclusion

Going through a divorce during a recession can be a challenging and stressful experience. With the right approach and support, it is possible to navigate this difficult time and come out in a better position financially and emotionally.

By considering a low conflict approach, carefully evaluating the impact of child support and alimony payments, and properly dividing property and assets, you can set yourself up for success during and after the divorce process.

Remember to practice self-care and seek out support from friends, family, or a therapist if needed. With the right mindset and resources, it is possible to weather the storm of a divorce and come out stronger on the other side.

It is essential to work with a knowledgeable, experienced, and client-centered attorney to help you navigate the divorce process and safeguard your interests.

If you are interested in exploring your options further, schedule a free 30-minute discovery call or call us at (770) 217-0798. We look forward to hearing from you!