Divorces Rise As Economy Declines
Many New York divorce attorneys have been reporting a significant rise in new divorce cases. The explanation most of these attorneys offer is the worsening economy. As the old saying goes, when money stops coming in through the door love often goes out the window. The US Bureau of Labor Statistics reported in October that the unemployment rate in New York had increased by over 25 percent from the year before.
Unfortunately today, most families have insufficient savings to draw from in order to continue their lifestyle, as they have become accustom, during this economic downturn. As a result they are faced with only two options, spending cuts and lifestyle changes or borrowing money to pay bills. In many cases married couples do not see eye-to-eye on this issue. Often it is something that they never had to deal with before as a couple.
Under New York law, for couples facing financial woes a divorce or separation may seem to be the only way to sever their financial ties to one another. That is because new debt obtained during the marriage will most likely be considered marital-debt, and that means both spouses will be responsible for repaying it, regardless of which spouse took out the loan. So, if one spouse wants to make ends meet by running up credit cards or other debt, the other spouse, whether he or she agrees or not, may get taken along for the ride. Particularly if some of the money gets spent on household expenses. This can lead to disagreements and eventually, divorce.
Couples who find themselves stuck in a disagreement over their finances may want to seek the mutual advice of an accountant or financial planner who can provide an independent opinion. If they still cannot agree, another solution, which does not involve divorce or separation, is a post-nuptial agreement. These agreements were not as common in the past, and thus, are not as well known as prenuptial agreements, however, they are virtually the same in the eyes of the law. The obvious difference is that a prenuptial agreement is created prior to marriage and a post-nuptial agreement is created after marriage. It allows the parties to, among other things, make decisions and agree how marital assets and debts should be divided in the event of death or divorce. A post-nuptial agreement can be a valuable tool for a couple that discovers they have different opinions on important financial issues. By agreeing to separate their finances they may be able to remove that as an issue, stop fighting, and mend their relationship. If this doesn’t work and the couple still ends up splitting, they will have already resolved one of the most fought over issues in divorce.
