Divorce and recession. How does financial uncertainty impact marriages? Should you divorce during a recession? Here’s what you need to know about divorce and recession.
I Want a Divorce, but There Is a Recession Looming
The inflation we saw in 2022 had not been this high since 1981. That’s four decades ago. Nasa launched Columbia, the first Space Shuttle mission, in 1981. Lady Di married the now King of England. Raiders of the Lost Arc debuted in theaters everywhere. And Millennials were born!
There was even a moment in 2015 when inflation was zero.
The Dow Jones closed at a new low (since the COVID-19 pandemic) in September 2022 and reached an all-time high in February 2026. It’s been a roller coaster ride of volatility since. The financial security of Americans is being tested, whether you have an employer-sponsored 401(k) or you’re an experienced investor in the market.
And we’re still waiting to hear whether we’ll end up in a recession.
What does this mean if you are thinking about a divorce?
A Fragile Marriage and Financial Uncertainty
A fragile marriage can falter during your best financial times. Couples drift apart. Differences that were charming, are now annoying. Laughter turns to tears.
Financial uncertainty can magnify those insecurities. Not only are you unnerved by the turmoil in your marriage, but you are worried about your finances – paying your bills, sending your kids to college, going on vacation, growing your career, and saving for retirement.
Inflation, stock market volatility, job insecurity, and a possible recession are wreaking havoc on Americans in 2026.
Should I Get a Divorce During a Recession?
That is an important question, and there is no straight-forward answer.
The National Library of Medicine (NLM, part of the National Institutes of Health) observed that the correlation between recession and divorce is elusive. This is detailed in a study of Recession and Divorce in the United States, 2008-2011] relying on data from the Great Recession:
“Recession may increase divorce through a stress mechanism, or reduce divorce by exacerbating cost barriers or strengthening family bonds.”
Echoing the findings from the NLM and quoting W. Bradford Wilcox, Director of the National Marriage Project at the University of Virginia, an article in Forbes highlighted the ambiguity of divorce during economic downturns:
“Financial distress has an ambiguous effect on families. For families facing a lot of personal financial stress, it can fuel marital conflict and instability. But, surprisingly, in the population at large it makes people more appreciative of their family bonds, including their marriages.”
How to Think About Divorce and Recession
In divorce, money should not be the first consideration. Your state of mind and level of happiness should always be paramount. The well-being of your children is very important. Your financial circumstances are a consideration.
You have to look at every aspect of your life and what you imagine your future life can be to decide whether a divorce is the answer.
Divorce will bring disruption to your life. Is now the time? It may be. Or maybe your marriage, even an unhappy marriage, is providing a certain level of stability to your family that is important to you right now.
But let’s assume your mind is made up. You’re unhappy and want a divorce. Now, it’s just about timing.
Things You Should Consider
There are, of course, many considerations. In financial terms, the first question may be do you even have enough money to support two households at the same standard of living you’ve been enjoying, and if not, how much of a reduction will each party have to suffer?
If you’re the spouse who earns more money, you’d prefer to have your support obligations determined when your income is down. And of course, as the lower-earning spouse, you would prefer to wait until your family’s income and assets have returned to normal.
Also, a lower stock market may mean each party has less in income-producing assets, which will affect both parties’ abilities to be self-supporting and may increase the burden on the party paying support to make up the shortfall.
We have represented people through the dot.com bubble of the early 2000s and through the financial meltdown of 2007-2008. The economy experienced a “V” shaped recovery after ’08. Those people who waited to get divorced until after 2008 may have fared better financially, but it’s impossible to know if they actually made the right decision for themselves and their families.
The question about divorce and recession has resurfaced in the current economy.
There is no one answer for everyone.
Questions to Ask Yourself about Divorce and Recession
Usually, all these issues come down to a simple series of questions, such as:
- How unhappy am I?
- Can I put up with our situation until [fill in the blank, e.g., the kids go off to college, our daughter’s bat mitzvah, my wife/husband makes partner, managing director, etc.]?
- Will I (and my children) be better off emotionally and psychologically, even if my (our) lifestyle goes down?
- Can I negotiate an agreement that will let me come back to court to modify the agreement if our financial circumstances improve (or worsen)?
- What impact will the decision I make have on my children – emotionally, socially, financially?
- Can we maintain joint ownership of some assets, such as our house, until the market improves? Could we sell or transfer our assets in a better financial environment?
We all strive to make the best financial and emotional decisions in our lives.
And some of these questions and issues you have to decide for yourself. Sometimes we need knowledgeable input. That’s when you need to reach out and get answers.
A good divorce lawyer who has experience with turbulent economic cycles can help you plan for a future during uncertain economic times.
Take Action
Should I get a divorce during a recession is an important question.
And there is no straight-forward answer.
We don’t know when a recession is going to start (or end) or how quickly the stock market will recover. We do know that your happiness and the well-being of your family hinges on more than just money. So, trying to time the market is often not the answer.
We’d be happy to discuss your situation with you. Whether you are still exploring the idea or already know that you want to move forward with a divorce or other family law matter, get in touch with us.
If you are considering a divorce in New York, or have another New York family law matter, contact Garr Silpe, PC today to schedule a consultation.