Wealth and divorce often go hand-in-hand. But that doesn’t mean that they work the same way in every relationship. If you’re moving toward a divorce, the role that financial assets play could be very different than it will be for someone else.
For example, wealth can make divorce more likely for some people and less likely for others. Let’s take a quick look at this interesting relationship.
Financial stress
In some cases, wealth could make divorce less likely if that divorce would otherwise have been due to financial stress. For instance, maybe one spouse can’t hold down a job and the family has trouble making ends meet and paying the bills at the end of the month. Job loss does increase divorce odds. If that spouse suddenly gets a job paying them $100,000 a year, it reduces the stress that the couple faces and makes divorce less likely.
Financial freedom
On the other side of the coin, however, studies have found that divorce rates go up in strong economic times. This is likely because some couples feel financially dependent on one another and may stay in an unhappy marriage because of that financial support. Wealthy couples who know they don’t need financial support may feel more freedom to decide if they would like to end the relationship. They move ahead with a divorce, knowing they will be financially stable on their own.
Working through a divorce
Either way, dividing finances can be complex during a divorce. Couples going through this process need to understand all the legal options at their disposal – and the rights they have during property division.
