The Divorce Rate and Economy
Everyone knows that marriages can end up in divorce, especially when there is financial trouble in the relationship. Finances are the leading cause of stress in a relationship according to a study by SunTrust Bank. For anyone who has been in a relationship or married, this is no surprise. While it is hopeful that any difficulties can be worked out, divorce is sometimes the best option moving forward.
Most people think that money troubles only affect lower-income couples, but that is not necessarily true. Today, we want to talk about the idea that higher income couples may have a higher divorce rate.
If you are going through a divorce, please seek assistance from an Arizona family law attorney who understands the complexities of these cases. There is too much at stake to try to go through this by yourself.
Higher Income, More Expenses
One attorney told CNBC that “We have couples with a lot of money but high monthly expenses and they’re strapped.”
Many couples with a higher income struggle to maintain a more expensive lifestyle. One attorney marveled at the fact that so many people who earn over $1 million a year have nothing saved in their 401(k) or other retirement plans. This kind of spending and behavior can impact future stability.
Another factor that affects high-income couples is that the person who makes more may find that they spend a bunch of time on the road or working long hours. That money comes at the expense of time that could be spent with family.
The American Academy of Matrimonial Lawyers says that, as the economy strengthens, more couples may experience troubles. They say that divorces tend to increase when the economy is thriving. Incomes are rising at a noticeable rate for the first time in a decade.
Other Issues In High-Income Divorces
High-income couples tend to have more assets that those who are lower income earners. This can really make for a complicated and contentious divorce proceeding. While many high-income couples do have a prenuptial agreement, many do not. Even if there is one in place, it will need to be reviewed by the court before any decisions are made.
In Arizona, property needs to be divided evenly. For high asset couples, this can mean:
- The marital home
- Vacation homes
- Rental properties
- Other real estate
- Businesses owned
- Retirement funds
- Investment accounts
- Stock options
- Brokerage accounts
- And more
Due to the complexities involved, accountants may need to be hired to examine each asset and account. Tax returns for the couple will need to be closely reviewed.
If there are minor children involved, issues of child custody and child support will need to be decided, but this may involve more than a typical separating couple would go through. If the child attends private schools or has expensive child care, support may be more.
Spousal maintenance will certainly be an issue if one of the parties is not a high-income earner. If one spouse has been dependent on the other, the dependent spouse may be owed alimony payments that will ensure they live a lifestyle similar to the one they have been accustomed to. This amount will be considered after the division of assets is complete.
Moving Forward From Here
Regardless of your income level, nobody wants to go through a divorce. If your relationship is heading that direction, please seek assistance from qualified and experienced Arizona family law attorney. You need someone who can guide you through every aspect of the process from beginning to the end, a person who will ensure that you are treated fairly in negotiations and in court.
Click here for information on finding hidden assets in divorce in Arizona.