In a contracting economy, divorce rates go up.

By Vicky Townsend - President - Divorce Right, Inc.?

As the founder of Divorce Right, Inc. and the National Association of Divorce Professionals, ? I've seen firsthand how the economy and inflation can significantly impact divorce rates. As the economy struggles, so do couples.? As an employer, watch for this; an average divorcing employee can lose up to $23,000? per year in productivity. ? Let's explore this topic in more detail.

While there are no specific statistics on divorce rates during high inflation, studies have shown that economic hardship and financial stress significantly contribute to divorce rates. High inflation rates can lead to financial instability and hardship, which can, in turn, put a tremendous strain on a couple's relationship.

A study published by the National Institutes of Health found that during the recession of 2007-2009, there was a significant increase in divorce rates among couples who experienced a job loss or housing foreclosure. Similarly, a study published in the American Journal of Sociology found that couples who experienced job loss were more likely to experience marital difficulties, which could ultimately lead to divorce.

Additional research has shown that financial stress can significantly predict divorce, regardless of economic conditions. A study published in the Journal of Family and Economic Issues found that financial disagreements significantly predict divorce, even when controlling for other factors such as income and debt.

The economy plays a critical role in the decision-making process of couples when it comes to divorce. Couples are more financially stable when the economy is doing well, making staying together easier. However, financial stress can strain a relationship tremendously when the economy struggles. This can lead to fights about money, job loss, and other financial difficulties, all of which can significantly contribute to divorce.

One of the key drivers of the economy is inflation. Inflation can impact divorce rates in several ways. For one, when inflation is high, the cost of living increases, and couples may struggle to keep up with expenses. This can cause financial stress and make it difficult for them to maintain their lifestyle, leading to conflict and potential divorce.

Inflation can also impact divorce rates by reducing the value of assets, such as homes and retirement accounts. When assets lose value, couples may find themselves in a precarious financial situation, further exacerbating existing financial stressors and making it more difficult to stay together.

Inflation can also impact the job market, causing job loss and reducing employment opportunities. This can lead to financial instability and make it more challenging for couples to maintain their lifestyle. As a result, they may become more likely to consider divorce to address financial challenges.? Just because your employee didn’t lose their job doesn’t mean their spouse hasn’t experienced a job loss.? Think Google, Amazon, Meta, and now McDonald’s.?

To wrap this up, the economy and inflation can significantly impact divorce rates.? If your employee is showing the signs of divorce (we teach you these things in our Linkedin Lives and in our Divorce Awareness and Sensitivity Training course), please reach out to us, and we will lock arms with your employee and help them through this life crisis.? We are their thinking partner when they can’t think for themselves.? We would be honored to work with them. ? Click here to set up a call to discuss the needs of your employees and our very reasonable fee structures.?