A new study published by the American Academy of Matrimonial Lawyers (AAML) captures how divorce rates tend to increase the stronger the economy is. Couples are most apt to have more diversified assets when things are going well. Since couples are more apt to split up when they have more investments, they rely heavily on their divorce attorneys to negotiate settlements when dividing property among themselves.
The AAML notes that the United States economy reportedly exceeded its forecasted growth expectations during the first quarter of 2019. This resulted in a stronger labor market and higher incomes. Divorce rates have soared because of this.
An AAML spokesperson notes that spouses can more easily pursue a divorce when they feel that they can easily recover what they’ve lost. This is why higher net worth individuals often feel that they can split up their assets and still have enough left over when the economy is doing well.
The poll also revealed that many divorce attorneys only see declines in divorce filings when the nation’s economy experiences a downturn. Couples often delay filing for divorce when their financial prospects are uncertain, or budgets are limited.
Researchers with AAML also found out that it’s during financially prosperous times like these that couples come to them with the most complex property division requests.
Some of the most difficult assets that they’re asked to help their clients divide up include antiques, art, silverware and wine collections. Many of these items aren’t easily assigned a valuation and are too rare or sentimental to be readily exchanged for something else.
Any property divided up as part of a divorce is often nontaxable. Under the Tax Cuts and Jobs Act, both the payor and recipient of alimony must pay taxes on the spousal support paid and received. These recent changes have made it where the division of property is more highly contested than it’s ever been before.
A contested divorce occurs when Fort Myers spouses are unable to reach a consensus about how to share custody of their kids, about child or spousal support or how to divide up their assets. If a couple can’t reach an agreement themselves, then they can ask their lawyer to negotiate on their behalf or pursue mediation or litigation. An experienced property division attorney can advise you what option will best help you safeguard your interests in your contested Florida divorce.
