Marriages are a time of celebration and happiness. Sadly, between 40% and 50% of American marriages end in divorce or separation. This rate has held steady for decades. However, the current COVID-19 pandemic has presented a series of new, daunting challenges for families to face.
During self-quarantining orders, most families in the US are facing increased stress, financial hardships, childcare issues, and uncertainty about the future. On top of all these factors, couples can’t even ‘take a break’ from each other without risking exposure.
These challenges could rock the foundation of even a rock-solid marriage. For many families, the pandemic-related stressors will be what finally pushes a couple over the edge and can lead them to call it quits. While it is too early to have statistics on pandemic-related divorces, many experts predict a wave of divorces. The legal community is also reporting a surge of inquiries related to divorce and separation
Separation Amid Uncertainty
Being cooped up together will likely contribute to many couples throwing in the towel on their marriage. Unfortunately, the process is being prolonged due to the pandemic. Many couples cannot move forward with divorce proceedings until the courts begin taking on new cases.
The delay prolongs the need to cohabitate, which becomes even more difficult when relationships are contentious. In addition to the daily stress of living with someone while trying to end a relationship, many families have also suffered severe financial setbacks. The pandemic has caused many asset values to drop, small businesses to close, and shifting employment situations for many individuals.
The result is an excess of uncertainty about the financial future of the family and how the divorce may also complicate financial matters. COVID-19 has increased the financial stress, and level of fear and panic for many families who may be undergoing a separation or divorce.
Divorcing Later in Life
While the overall divorce rate in the United States has remained steady for decades, it has increased exponentially for adults over 50. For those over 65, the rate has tripled. Many individuals in these demographic groups have determined that with a longer life expectancy, it’s worthwhile to ensure that they remain happy throughout their retirement.
Older divorcees often approach the process as a ‘new beginning,’ rather than the end of something. They can pursue hobbies, reignite past romances, and find greater satisfaction in life. Unfortunately, many people who divorce at this stage in life have greater financial challenges, which can range from uncertainty whether income levels will support two households to outliving their assets.
The biggest obstacle is that older divorcees must balance a longer life expectance with fewer assets to support them through their remaining years. And while remarriage after the age of 55 is also a growing trend, the divorce rate can be especially high for this group as they have less of a shared history to hold the marriage together when things go wrong.
While there is no way to know for certain the full scope of how COVID-19 may impact families and marriages, the current level of interest suggests that many families will have difficult times in the near future. If you are currently considering a separation or divorce, it is worth speaking with a professional to help you understand all of the challenges that you may face – whether they are related to the pandemic or not.
A full-service Certified Public Accounting Firm located in Denver, Shuster & Company, PC provides quality, personalized financial advice and guidance to individuals, businesses and the legal community. We offer an extensive range of services, with emphasis in forensic accounting, business valuation, and litigation support.