Wednesday, June 3, 2020
In the last 20 years, the divorce rate has been dropping, but according to divorce attorney Jacqueline Newman, the coronavirus and its forced quarantine may reverse the trend. If this trend reversal does occur, it will open a door for financial advisors to help their clients and their attorneys get through the divorce proceedings.
Newman stated that she believes that the divorce rates will increase significantly due to stress caused by the coronavirus epidemic. Newman added that stress is not good even for the healthiest of marriages and couples being quarantined together at home will likely result in a decade worth of new filings in a matter of months.
However, the stress of divorce can be lessened with a good financial advisor. Financial advisors can provide information on assets, particularly if one spouse does not trust the other. When a couple is splitting complex assets, there are tax implications involved. The financial advisor can also act as an unofficial mediator.
Newman added, "Overall, the coronavirus pandemic is a historic unfolding event that is drastically changing divorce in America." The coronavirus pandemic is adding stressors on marriages that did not exist before and that alone is likely to increase divorce rates.
See Karen DeMasters, Marriage Breakups May Skyrocket Due to Pandemic, Divorce Attorney Says, Financial Advisor Magazine, June 1, 2020.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.