Till Debt Do Us Part: Rise in Divorces Linked to Recession

The number of divorces in England and Wales has risen for the first time since 2003, a 5 percent increase in 2010, leading some experts to suggest that the recession and economic turmoil could be at fault.

The number of divorces in England and Wales has risen for the first time since 2003, a 5 percent increase in 2010, leading some experts to suggest that the recession and economic turmoil could be at fault.

More than 132,200 couples had their marriages end in 2010, compared with 126,496 in 2009, according to a report from the Office of National Statistics (ONS). Civil partnership dissolutions also rose but, unlike marriages, the number of civil partnerships is rising rapidly. Of the marriages that ended, the average length was 11.4 years.

The government agency who compiled the report said that the gloomy economy could be at fault.

[quote]The results could be consistent with the theory that recession is associated with an increased risk in divorce, but with a delayed impact, said the ONS.[/quote]

The ONS added that social research has shown that unemployment and economic downturns can cause family instability, and that “in addition some individuals may believe that will get a more favourable divorce settlement if their income is currently low.”

ONS statistician Elizabeth McLaren believes the figures are surprising because marriage rates are going down: the 231,490 registered marriages in 2009 is the lowest rate since records began in 1850. Divorce rates peaked in the 1980s and have also been declining since.

McLaren thinks the recession may be a factor, which could impact on future years.

[quote]It is a trend we’ve seen from previous recessions – but with two-year separations you don’t see the impact immediately.[/quote]

Interestingly, in 2009, the American Academy of Matrimonial Lawyers said its survey found that divorce filings were declining during the recession which saw increased job losses, salaries and housing prices.

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“The current economic climate is proving to be far more unforgiving than estranged couples seeking a divorce. Forced to weigh damaged marriages against tight budgets and uncertain financial outlooks, many spouses seem more willing to try and wait out the recessionary storm,” said Gary Nickelson, president of the AAML, in a 2009 statement reported by Reuters.

Justin Wolfer, Freakonomics writer and tenured Assistant Professor of Business and Public Policy at the Wharton School, finds it premature to draw conclusions on divorce and recession based on the recent data.

Writing for Freakonomics, Wolfer comments that the divorce rates in the United States have been falling for the past 30 years, and “barely changed during either the 1990 or 2001 recessions. And if we examine data over the longer run, again we see that divorce doesn’t seem to move around much with the business cycle.”

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