Credit Crunch Puts Divorce Rates Under Attack

While the current credit crunch has caused many industries to constrict, fewer couples filing for divorce, has provided another unexpected drop. Is it just that the financial crisis has made it a lot harder for couples to sell jointly owned homes, plus the greater increased difficulty of being able to finance two separate establishments?

A recent survey by Grant Thornton's Forensic and Investigation Services showed that almost half of all surveyed matrimonial lawyers report that the number of divorces has decreased dramatically. Partner at Grant Thornton's, Robert Kerr, said, "The reasons for the drop vary but certainly the financial carve-up that follows divorce settlements will be at the forefront of a couple's minds when contemplating divorce".

"For many spouses, the divorce process involves a great deal of long-term planning and waiting for better economic terms is often just another element of the overall process", says Gary Nickelson, President of the American Academy of Matrimonial Lawyers, (AAML). "A dramatic drop in the net worth of a couple can effectively postpone the final decision from being made".

The Office for National Statistics in Britain stated earlier this year that the number of divorces had dropped from 12.2 per 1000 couples in 2006, to 11.9 in 2007. This is a 26 year low. AAML reported an overall 27% decrease in the number of divorces.

Australia shows a continuous decrease in divorces over the last seven years. Officials say the divorce rate is now 23.6% lower than it was in 1986.

"The rate of marriage has dropped and therefore the rate of divorce has also dropped", claims Julian Lipson, a British lawyer.

Other authorities state the lower divorce rates are simply a reflection of forty years of increased government spending in the areas that show the effects of broken homes, thus creating a cultural change in attitudes towards marriage.

The question needs to be considered: Is the world heading for longer-lasting marriages, are couples working together more or is it merely that financial considerations are at the bottom of the trend?