Many people in Colorado may not be seeing it yet, but economists tell us the economy is beginning to recover from the worst recession since the 1930s. As the economy slowly improves, things that slowed down during the recession are bouncing back – including the number of divorces.
When the economy was at its worst, many people in unhappy marriages put off divorce because they simply could not afford it. A lot of couples owned homes that had gone underwater: due to falling house values they owed more on the mortgage than the home was worth. Many had lost jobs and could not afford the expenses of the divorce process or of living on their own afterwards. All that is changing.
Rising home prices now mean that many couples can split the profit from the sale of an asset that was worthless a couple of years ago. Rising employment means more people can afford to divorce, and are more confident of their ability to make it on their own financially.
This economic news emphasizes the importance of conducting a thorough asset valuation at the time of divorce. Especially in a high asset divorce, rising asset values make it critical that any valuation be accurate and up-to-date. The values of real estate, pensions, retirement plans and business assets have all likely changed in the last two years, and are continuing to change. As the values of homes and other assets continue to rise, it is critical that a divorcing spouse have the advice and counsel of a family law attorney with a solid understanding of asset valuation issues.
Source: Los Angeles Times, “Divorces increase as improving economy makes split-ups affordable,” Stuart Pfeifer, Sept. 18, 2013