Economic Impact of Divorce

Various news publications have dedicated time and coverage to researching the affects of the recovering economy on divorce rates. The Washington Post recently reported on a study which concluded that contrary to popular belief, divorce rates have not in fact sharply declined since the mid- 1980s, but rather, have “flattened” among certain age groups. The American Census Bureau is continuing to collect data to assist with this research however preliminary results have shown that baby- boomers are divorcing at higher rates than younger generations. Researchers are attributing lower divorce rates of members of Generation Y and today’s Millennials to trends such as marrying later in life and cohabitation before marriage.

Despite these statistics which indicate lower divorce rates for younger couples, people well into their 40s, 50s, and 60s are filing for divorce at some of the highest rates since 2008. The number of divorce filings rose to 2.4 million in 2012 for the third consecutive year, according to a study published by Bloomberg. These separations are resulting in the formation of new family dynamics and are responsible for sizeable growth in the U.S economy. Higher divorce rates result in increased household numbers nationwide and the impact doesn’t stop there. Employment rates are increasing with more singles entering the workforce and home prices are rising with greater need to purchase after separation or a divorce.

Marquette University Professor, advisor to the Federal Reserve Bank of Chicago, and contributor to the aforementioned study Abdur Chowdhury urges those that are seriously contemplating divorce to think about taking action sooner rather than later to avoid these increasing costs.

If you are considering filing for divorce and would like to speak to a trusted and experienced Long Island Divorce Attorney to discuss your options, please contact the Law Offices of Jay D. Raxenberg. Call (516) 491-0565 or toll free at (888) 543-4867.