The American economy is a bit like Schrödinger’s famous cat, simultaneously in a recession and not in a recession. The answer depends on your source, with Forbes saying we have been in a recession since the summer of 2022 and Bloomberg saying no, we dodged that label. Still, economic uncertainty can cast a cloud on a marriage, with both spouses considering separation as a solution.
Jump to a Section
- Are We in a Recession?
- Separating in Virginia
- An Economical Pinch May Mean Less to Divide
- Divorce During The Great Depression
- Putting Yourself in the Best Position
Are We in a Recession?
The White House offers an official federal government definition of a recession, so you need not rely exclusively on the likes of Forbes and Bloomberg:
- The National Bureau of Economic Research (NBER) Business Cycle Dating Committee—the official recession scorekeeper—defines a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
It’s a squishy definition, as the White House readily admits: “…both official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data.”
Given that the “official recession scorekeeper” uses a holistic view, you and your spouse can decide for yourselves if your microeconomic conditions are inflationary, deflationary, or static.
Separating in Virginia
First, Virginia has no such a concoction as “legal separation.” You two are married, then married but separated, and then divorced. The process can take a while. You and your spouse need to ask and answer some tough questions as you explore your options:
- Given the costs of two attorneys, can you afford to separate?
- Can you afford for one of you to move out, or will you separate under the same roof?
- Are both your current jobs secure?
- How will you handle physical and legal custody of children?
- Accounting for emotional, sexual, and financial conditions, can you afford not to separate?
A property settlement agreement in Virginia is a road map to a divorce. It establishes distribution of assets and debts. Any family law matter incurs expenses, so consider whether both of you are prepared to add to your current obligations. One of you may have to make spousal support payments, even during separation. One of you may have to make child support payments, too.
An Economical Pinch May Mean Less to Divide
The spoils of war and the spoils of marriage are seldom divided perfectly and equally. Under § 20-107.3 of the Code of Virginia, marital assets (and debts) are to be divided equitably, not equally. In a recession (economic downturn, hard times, deflationary environment, financial collapse; choose your label), you and your spouse may have less to divide. The total value of your marital estate may have shrunk, making the process of property settlement more streamlined.
Other financial considerations of an economically pinched marital estate:
- The stocks and bonds you hold could rebound in value later, after the divorce is final
- Spousal and child support payments, mandated for you to pay by the court, could be based on your diminished income
- Tumultuous economic conditions can lead to revisions in the property settlement agreement, due to material changes in circumstances under 20-109
Divorce During The Great Depression
During the Great Depression (1929-1941), the American divorce rate went on a roller coaster, according to sociologist Andrew Cherlin of Johns Hopkins University:
- From 1929 to 1933, divorce rates dropped 25 percent
- From 1933 through the end of the decade, the divorce rate climbed steadily
- From 1940, trends indicate that couples delayed divorce, but did not rule it out
With COVID-19, divorce rates were again affected, but so too were marriage rates, according to the National Library of Medicine. Both declined very slightly.
Our point is that, if you and your spouse are already contemplating separation or divorce, neither pandemics nor recessions will stand in your way. You may both decide to delay legal action, but if separation and divorce is in the air, eventually you will separate and divorce.
Putting Yourself in the Best Position
Marriage, separation, and divorce are all emotionally charged topics. Quantifying love, sex, and romance is devilishly difficult. But to be in the best possible position to handle separation and divorce during a recession, consider these tips, gathered from various sources:
- Planning several months ahead of the actual separation and subsequent divorce can provide strong financial foundations for you both
- Dual-income couples lost hours and income during recessions and the pandemic, but rebounded quickly (according to the Federal Reserve Bank of St. Louis)
- The Federal Reserve also points out that, the higher your educational attainment, the more resilient you are to economic downturns, with college-educated couples best able to withstand financial binds
- Couples with financial resources in reserve—through savings, stocks, bonds, pensions, and various insurance instruments—have more flexibility and wider options than cash-poor couples
- A mediated divorce can be less costly than a contested or litigated divorce, says Authority Magazine
When you partner with The Firm For Men by contacting our office, you can speak with an experienced Virginia family law attorney, get competent, direct answers to your questions, and secure your financial future. You may also telephone us at (757) 383-9184 so we can get to work protecting your rights as a Virginia man.