SAN DIEGO, CALIFORNIA-Foreclosed homes, fallen stocks, and increased unemployment have become all too common experiences in America since the start of the Great Recession in 2007.
People have changed the manner in which they spend their money and unexpectedly, couples have changed the way they divorce as a result of the recession.
"The process of divorce changed drastically since the onset of the recession, " said John Griffith, a San Diego family attorney. “The state of California was heavily affected by the recession and more couples are now either postponing divorce until they're more financially secure or they're trying to go about the process on their own without consulting a professional specializing in divorce matters. “
A survey of Certified Divorce Financial Analysts was administered in April 2009 and discovered 68 percent of respondents claimed they saw clients who could not afford to divorce due to financial problems caused by the recession, according to the Institute for Divorce Financial Analysts.
Contrary to popular belief, during a recession the divorce rate decreases. Many a divorce lawyer considers this to be true because assets usually lose value during a recession, couples cannot afford the legal expenses that the divorce process entails, and the transition from supporting one household to two in a recession adds extra financial stress on divorcing couples. As a result some couples decide to continue to live under the same roof during the divorce or remain in the marriage while the recession wages on.
"The idea of divorcing couples living in the same house during and after their divorce is a consequence of the financial burden of a divorce during a recession, " said John Griffith of Griffith & Young a provider of San Diego child support litigation services. “Sadly, children often suffer emotionally from the confusion and stress of living with two divorcing or divorced parents in the same house. “
With the arrival of the Great Recession in 2007, the real estate industry suffered and the value of homes fell dramatically. An extensive study from Moody's Analytics titled “Housing in Crisis: When Will Metro Markets Recover?" found house prices in California and Florida dropped by 50 percent or more from peak value, according to a 2009 Reuters.com article. Most divorcing couples choose to retain joint ownership of the house and continue to live in it because the house is no longer an asset, but a liability and regarded as “underwater real estate. “
Underwater real estate is a term to describe a home where the mortgage costs more than the house is worth. As a result, homeowners lose money if they sell the house.
If the couple that is divorcing decides to sell the house or one decides to leave the house, the single parents usually move closer to family because they cannot financially support their children on their own, says the Oceanside divorce lawyer .
Children of divorce feel the burden of divorce in a recession as well, and the burden is not only psychological. Children that attend private school normally are transferred to a public school or less expensive private school because the custodial parent cannot afford the original tuition.
Many times child support cannot support the expenses of private schooling or expensive extracurricular activities because more divorced parents request to have their child support payments reduced, especially after losing their job. Children learn to adapt to a new lifestyle alongside their divorced parents, especially in an economic recession.
The complex process of divorce often affects more than just the splitting couple. The economic recession only amplifies the already difficult transition. Having the help of a lawyer or professionally trained counselor can help the undertaking of a divorce be as smooth and painless as possible.
Learn more about Griffith & Young and the services of Carlsbad divorce attorney by visiting SanDiego-Divorce-Law.com. To schedule your free initial consultation and case analysis, please call 858-345-1720.
About Griffith & Young
The divorce lawyers of San Diego at Griffith & Young have extensive litigation experience in all areas of family law practice and California divorce law. Based in San Diego, Griffith & Young offers low flat fee services, a sliding hourly scale and military discounts.
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