economy Archives - Cordell & Cordell

Why The Bad Economy Can Be Good For Divorcing Couples

Joseph CordellDivorce may make the most sense when you think you can least afford it, according to Joseph Cordell’s latest Huffington Post column.

The co-founder of Cordell & Cordell explained that in the stock market, you buy low and sell high. So why would you divorce high and not low when current economic times have severely depreciated assets?

“Divorce is something you don’t want to choose unless you must,” Cordell writes. “To those of you who must, I want you to keep in mind the timing of a divorce.”

Cordell & Cordell does not advocate for divorce, but if you already have reached the decision that a divorce is the best option for you then the current economic climate may be in your best interests.

“Hard economic times are potentially favorable to the party that generates more income and has more assets, particularly temporarily depressed assets,” Cordell writes. “It may be less financially painful to divide the assets, such as your home or your retirement account, when the values are much smaller.”

You need to sit down with a divorce lawyer to explore the best timing options in your case to minimize your financial exposure if you have already concluded that you are going to get a divorce.

Read the full article: “Divorce May Be A Discretionary Purchase

Unemployment and its effect on marriage divorce

Unemployment has had a considerable effect on many individuals’ financial situations, but this issue is also taking a toll on relationships, the Fiscal Times reports.

The news source reports that a recent study found that 75 percent of women would not marry a man who was unemployed, pointing to dating difficulties for adults without a job. In blossoming relationships, unemployment has caused more couples to live together. According to the publication, the number of unmarried couples cohabitating increased 13 percent from 2009 to 2010. In addition, many people have delayed marriage plans or downsized these celebrations due to unemployment.

For couples having marital troubles, tough financial times can force them to delay divorces. The news source found that there was a decline in divorce rates between 2008 and 2009, when the recession began. In some cases, finances are to blame, as the average divorce can cost around $5,000.

According to Psych Central, a study published in the American Journal Sociology found that a man’s employment status was a major factor in divorce. Male unemployment increases the changes that his wife will initiate a divorce.

The best times financially to get divorced

Because each couple is different, there is no sure fire schedule to determine when it is the right time to get a divorce. However, MSN Money reports that some financial situations can be better for divorce than others.

If one is considering filing for divorce, the best time to do so is when both spouses have minimal credit card debt. In some states, one spouse’s debt is seen as community property, so individuals should get a full financial snapshot of their soon-to-be ex-spouse’s situation as well. In addition, couples with good credit scores also tend to fare better economically during a divorce, as purchasing a new home or car after marriage dissolution will be made easier.

For couples with children, a divorce may be financially less harmful with kids who are in high school. If a spouse is ordered to pay child support, it will likely only be for a few years, and a divorce could actually help families who apply for financial aid for college, according to the news source.

The Money 2000 program run by Rutgers University advises adults to sign divorce-related documents carefully to save themselves from unfair financial arrangements. If anything is unclear, a divorce attorney should be consulted.

Nesting offers child custody compromise

Birds are known to nest, meaning they create a comfortable and safe environment to support their offspring as they grow. Parents essentially do the same thing as they settle into a family home. But after a divorce, children are often uprooted from this familiar home, especially if parents decide on sharing child custody.

However, some parents are choosing to keep their children in the family’s house. In this form of nesting, the adults take turns moving in and out depending on the custody schedule.

According to USA Today, nesting is not a new concept, but the increase in popularity of the practice could be in part due to the down economy and housing market. Keeping the house in the family can prolong the investment until the housing market improves and the home can be sold for a much better return.

“They’re not doing it so much for the kids, as doing it to increase the value of their asset,” a divorce lawyer explained to the publication.

Whatever the reason, many family experts agree that this arrangement is the easiest for children to adjust to, especially if they are young. According to Bonus Families, this custody agreement works best for ex-spouses who can stay civil and flexible while co-parenting.

Bloomberg News: Cordell & Cordell Growing

Bloomberg News interviewed Joseph Cordell, co-founder of Cordell & Cordell, about the rising demand for divorces and how that is creating “new forms of households.”

Some of these new households may be created by people who have delayed divorces for economic reasons, according to the Bloomberg article on divorce.

“There is a pent-up demand for divorces,” which are usually “a matter of convenience or discretion,” said Cordell, whose firm represents men in domestic litigation.

Bloomberg mentioned Cordell & Cordell’s growth – about 20 percent more clients in the first quarter – that is likely to continue in the next few quarters.

To arrange an appointment with a Cordell & Cordell attorney, please contact the Cordell & Cordell office nearest you.