Increase in divorce rate can affect economy

Increase in divorce rate can affect economy

In Illinois and in other parts of the world, divorce proceedings are expensive. The expenses incurred in divorce, including hiring an attorney, property division, and post-divorce modifications, not only affect the finances of the divorcing couple but the U.S. economy as a whole. High divorce rates stunt economic growth. According to a study conducted by the Marriage and Religious Research Institution, a healthy marriage helps the economy to grow more than divorce does. Divorces result in an increase in the number of households, which means more resources, power and houses are needed.

According to an article in Business News Daily, divorce negatively affects this country’s economy more than any change in government policy. Divorce obstructs the growth of a country’s economy and reduces its chances of coming out of a recession.

The divorce rate in America is declining. Currently, the average divorce rate for a first marriage is 41 percent. Several factors are responsible.

The major factor behind the decrease is the fact that women are in the workforce much more and are helping to support their families. Dual-income families are helping to drive the decrease in the divorce rate. Another factor is that the younger generations are getting married at an older age, as younger people choose to become financially stable before getting married. Statistics show that the later people marry, the lower their chances of divorcing.

Although the divorce rate is slowly decreasing with the changes in the family dynamic, divorce is still playing a vital role in slowing down the country’s economy. If the changes in family dynamics continue, over time the U.S. economy should benefit.

Source: San Francisco Chronicle, “How Divorce Can Adversely Affect The Economy,” Amanda C. Haury, Nov.7, 2012