There are a variety of reasons why couples separate and divorce. One such cause is a difference of opinion on matters of financial importance. According to studies, financial disputes are among the most often cited causes for divorce among those who took part in the surveys. It makes no difference if the pair is rich or impoverished; financial disputes may devastate relationships between couples. This is due to the fact that there is a very significant connection between money-related disputes and stress. However, divorce is a highly costly procedure that takes a significant toll on the financial well-being of those who have gone through it.
Amazing facts on divorce and money may be found in this article, which you should read.
Fundamental Divorce and Money statistics in the US
This section displays statistics that are key to divorce in the US.
- The rate of divorce in the US was 15.5 couples per 1000 in 2019 compared to 22.6 in 1980 and 2.9 in 2018.
- In 2020 divorce increased by 36% in New Hampshire while there was a 10.1% decrease in marriages from March to November.
- The divorce rate decreased by 21% from the years 2008 to 2017.
- Every year, more than 750 thousand marriages are dissolved in the US.
- In the US, most divorce cases are filed from January to March every year.
- Marriages between down scalable adults who earn less than 20000 USD annually end up getting dissolved
- Upscale adults who earn above $75000 annually are not likely to divorce.
(Sources: wilkinson & finkbeiner, Bloomberg, SOC ARXIV, GO BankingRates)
The greatest divorce rate was recorded in 1979, with 22.8 divorces per thousand married couples, followed by 22.6 divorces per thousand married couples in 1980. 2.9 out of every 1000 individuals were divorced in 2017, according to the latest data. From its high in 1979 to 2017, the United States saw a remarkable decline in divorce rates. According to the National Center for Family and Marriage Research, the divorce rate increased to 15.5 per 1000 married women in 2019, which is a concerning increase from the previous year.
The connection between Money and Divorce
If money is involved, is there a link between divorce and the breakdown of a marriage? The data in this part will offer information on whether or not there is a link between money and divorce cases that result in the dissolution of a marriage. Continue reading to find out the truth.
1. Spouses who earn 50000 USD annually have a 30% risk decrease in divorce probability compared to those who earn less than 25000 USD annually.
(Source: wilkinson & finkbeiner)
The amount of income between married spouses has an effect on the probability of divorce. Divorce is more likely to occur in individuals who make a very little amount of money each year than it is in those who earn a large amount of money.
2. Disagreements over the spending habits of married partners increase the possibility of divorce by 45%.
(Source: wilkinson & finkbeiner)
Spouses who believe their partners are spending their money in a bad manner are more likely to divorce than spouses who believe their partners are spending their money properly.
3. Spouses who fail to accumulate any assets in the first three years of marriage increase their chances of divorce by more than 70% compared to those who accumulate assets worth 10000 USD or more.
(Source: wilkinson & finkbeiner)
Three years after marriage, couples with no assets increase their chances of divorce by seventy percent when compared to couples that obtain assets of at least ten thousand dollars (USD).
4. A SunTrust Bank survey of more than 2000 people revealed that 35% of the respondents mentioned money as the primary source of contention with their spouses.
According to the findings of this research, at least one spouse from the 55.6 percent of questioned couples mentioned financial difficulties as the primary cause for their divorce. A total of 36% of those who took part in the study said that financial difficulties were the primary cause for their marriage to have ended. In half of all marriages in which at least one spouse blamed money-related problems for the breakdown of the marriage, both parties shared the same view. This demonstrates that, out of all the couples that participated in the study, half of those who said that money was a cause of conflict were married to each other at the time.
5. Marriages in which husbands had no full-time job faced a 33% higher risk of divorce in comparison to marriages where husbands had a full-time job.
The similar pattern was seen in a research conducted by the American Sociological Association. A recent research found that having a full-time job increases the chance of divorce by 1.3 percent after three years of marriage, whereas not having a full-time job increases the likelihood by 1.0 percent. As an alternative, if the husband works full-time, the likelihood of divorce over the same period is 1.0 percent, as opposed to 1.1 percent if the husband does not work full-time, according to the findings of the study.
According to the results of the research, couples in which women have full-time employment have a greater chance of divorce than marriages in which the husband has a full-time job, according to the findings. Marriages in which the woman does 50% of the home duties have a 1.5 percent divorce chance after one year, while marriages in which the women performs 75% of the household chores have a 1.1 percent divorce probability after one year.
6. The divorce possibility increases by 3% with an additional 1000 USD increase in the income of the wife.
According to some studies, every $1000 rise in a wife’s salary results in a 3 percent increase in the likelihood of her divorce. On the other side, a comparable rise in the income of the husband lowers the likelihood of a divorce occurring between the couple.
7. 29% of divorced baby boomers said that they dissolved their marriage due to financial conflicts compared to 41% of the Gen X divorcees.
According to the findings of TD Ameritrade, more marriages involving partners who were born between 1965 and 1980 ended in divorce as a consequence of financial disagreements than marriages involving couples who were born between 1945 and 1964.
8. 48% of either married Americans or those living with their spouses argue over money with 60% of them arguing over overspending habits.
The results of a study conducted by Cashlorette on more than 1000 respondents showed that almost half of them had a financial disagreement with their spouses. According to the findings, 60 percent of individuals who had financial disagreements with their spouses said that the disagreements were caused by their partners’ spending habits. Based on the results of this research, it can be concluded that the vast majority of financial disagreements between couples are the consequence of one partner blaming the other for either squandering or underspending money. As a result, couples conceal purchases from one another since they are aware that their partners would not approve the purchase in question.
9. A family’s income reduces by between 28% and 42% after a divorce occurs.
Because when a couple separates, each person is left with the money he or she makes as an individual, divorce has a negative impact on a family. This has an impact on millions of children who are left in the care of a single parent. Even if the other spouse contributes to the maintenance of the children, the children nonetheless suffer from a lack of financial resources in the household. This is due to the fact that one of the parents had a portion of his or her salary deducted from the family’s income. For the kid or children, a 42 percent reduction in the family’s income is typical following a divorce, which means that they must forgo some of the benefits they were used to prior to the marriage ending.
10. There is a reduction in food consumption by 17% if the couple remains divorced for about 6 years.
When a parent withdraws money from the family, the family’s reaction is to reduce expenses in certain ways. For example, if the parents are unmarried for about 6 years, the decreased family income results in a drop in the quantity of food eaten by the family. Children born and reared by single parents, on the other hand, benefit from a 50 percent rise in income before tax and a 57 percent gain in income after tax with the marriage of the single parent if the marriage lasts for at least six years. Because of the shift in family income, access to basic necessities such as food is improved when both parents live in the same household. As a result, divorce has a negative impact on children not just emotionally but also financially.
11. About 50% of families become poor after a divorce if they have children.
As a consequence of divorce, about half of all families become impoverished. If one of the spouses is the only earner, this is likely to occur in the situation. It doesn’t matter whether the father provides child support if the family becomes impoverished because the husband is the only earner and the children are left in the care of their mother who does not have a source of income for them. More specifically, children whose parents have divorced and have been separated for about 6 years suffer a 40 percent to 45 percent reduction in income as they get older. An income reduction of this magnitude will have a significant impact on the financial position of a family over time.
12. Longitudinal surveys done nationally from 1967 to 1984 revealed that divorce made about 44% of women fall into poverty.
The likelihood of a divorced or separated woman falling into poverty rises by 2.83 times more than the likelihood of a married woman falling into poverty. As this data indicates, women are more likely than males to become poor as a result of their marriage ending in divorce. This is especially true in situations when women are out of work prior to a divorce.
13. The net worth of a household decreases from 8918 USD to 3452 USD from the fourth year before a divorce to one year.
Separation by itself has a substantial negative impact on the net worth of the spouses involved. Suppose they had a median net worth of 8918 USD before to their separation; their net worth will have decreased to about 3452 USD in the fourth year after their separation. The net worth of each spouse begins to increase during the first year of the divorce, reaching a median of 4175 USD, but it stays below this figure for the first 10 years after the divorce.
14. Parents who remarry experience an average income decrease of between 15% and 20% in contrast to 40% to 50% losses encountered by those who stay unmarried.
The degree to which parents’ income is reduced as a result of remarriage is reduced. This is due to the fact that the person they marry will contribute to the family’s financial well-being. The well-being of the family members is only marginally improved by remarriage. A similar trend has been observed in children who are born out of wedlock, with the likelihood that the parent remarries and divorces again increasing by 28 percent to 33 percent, compared to the predicted improvement in life quality of 50 percent to 57 percent for children whose parents get married and remain together. When a parent marries and stays in the marriage, the quality of life for their kid who was born out of wedlock is significantly enhanced.
Divorce process expenditure
Divorce not only takes a significant amount of time and effort, but it is also very costly. It has a draining effect on not just one’s emotions but also one’s money. When it comes to dissolving a marriage, money is the most important factor to consider. The fees charged by attorneys vary from state to state and from one lawyer’s competence level to another’s skill level. The costs associated with filing for divorce vary depending on the state in which the application is filed.
Go over the statistics in this section to get insight into the financial costs of a divorce in the US.
15. A divorce costs an average of about 12900 USD according to one study done in the US.
(Source: The New York Times)
In the United States, the average cost of a divorce is $12,900 dollars. Divorce in the United States is thus a costly endeavor that requires much work and forethought. As a consequence, many individuals put off getting a divorce when their spouses have lower incomes than they do.
16. Rich couples might spend even $20000 a day to hire private lawyers since they charge between $800 per hour to $20000 per day.
(Source: The New York Times)
When compared to less affluent people, rich couples pay much more on divorce. Due to the fact that they often employ private attorneys who charge between 800 USD and 20,000 USD each day,
17. In the majority of the US states the cost of divorce is above $10000 on average.
(Source: GO BankingRates)
Although divorce prices vary from state to state, the average overall cost of a divorce in the United States is 10000 USD or more in the majority of states. Only a few states have divorce costs that are less than ten thousand dollars.
18. Since a traditional divorce costs an average of 15000 USD, millennials avoid facing its costs.
(Source: Business Insider)
When it comes to divorce, millennials prefer to reach an out-of-court settlement in order to avoid incurring a significant amount of financial burden. Aside from that, many choose to live with their partners for extended periods of time without committing to marrying one other. Some millennial relationships may last for ten years or more, with just a small percentage of them ending up legally married in the end.
19. Apart from fees associated with applying for a divorce, fees for ab attorney may cost about 1400 USD.
(Source: GO BankingRates)
Many people in the United States find the expense of hiring an attorney to be too expensive. Most individuals would have to go through a great deal of financial hardship in order to pay the fees. Because of this, it is very difficult for the majority of Americans to leave a toxic marriage, even if they wanted to.
20. Nationally fees for filing a divorce range between 100 to 350 USD
The majority of states do not charge more than $350 in costs to file for divorce. Florida and Minnesota are among the states that impose hefty divorce filing costs, with some charging as much as 400 USD or more. California has the highest divorce filing costs at $435, making it the state with the highest divorce filing expenses. Wyoming, the Dakotas, and Mississippi are among the states where getting a divorce is inexpensive, with divorce filing fees of less than $100 in each of these states.
Many couples end up divorcing as a result of financial difficulties. When it comes to precipitating divorce in a significant percentage of marriages, disagreements about money are the most common cause. As a result, it is essential for couples to devise efficient means of communicating with one another when it comes to financial issues.
Divorce has an impact not only on the emotional well-being of family members, but also on their financial well-being. In addition to the emotional toll that divorce takes on both parents and children, the majority of families suffer financially as a consequence of the separation. Divorce results in a reduction in the family’s income, which results in a lack of certain fundamental necessities as parents attempt to make ends meet while dealing with their diminished financial resources. Children in divorced households may experience food insecurity and other basic needs when their parents separate.
Divorce has a negative impact on the net worth of the parents involved as well. After a divorce, some people may find themselves in financial difficulty. Women are more likely than males to be poor as a result of divorce. When women are not in the labor, the risk of them slipping into poverty rises. In such situations, Even the act of separating lowers an individual’s net value within four years of the event itself. When parents remarry, the income of their family with children increases by a little amount, and the gain is greater if the parents stay married after the remarriage.
When it comes to the financial burdens of growing up, a kid who grows up in a single-parent household has unique difficulties. As a result of their lower income, such families are unable to meet some of their fundamental requirements, which may have an impact on their future success. In general, the family income expenses of a kid who grows up in a single-parent household continue to exist until the youngster gets married or remarried.
Divorce is extremely costly, and as a result, a great deal of money is squandered during the process, from filing to paying attorneys and other costs. This is one of the factors that has led many individuals to contemplate out-of-court dissolutions of marriage or even cohabitation in order to save the legal costs of dissolving the marriage if it does not function well.
Divorce has a negative impact on not just the emotional well-being of the parties involved, but also on their financial well-being.
Q: Why do people divorce in the US?
Answer: Many reasons make couples divorce. The following are reasons and their percentages that a national survey revealed in order:
i Lack loyalty 73 percent
ii Arguing a lot 56 percent
iii Unfaithfulness 55 percent
iv Marrying at a very young age 46 percent
v Unrealistic expectations 45percent
vi Relationship inequalities 44 percent
vii Unpreparedness for marriage 41percent
viii Abusive relationship 25 percent
The percentages add up to more than 100 percent because those surveyed mentioned more than one reason.
Q: What percentage of divorces are caused by money-related issues?
Answer: According to at least two studies, financial problems may be a contributing factor in divorce. The results of a SunTrust Bank study, which polled more than 2000 individuals, showed that money was the main cause of disagreement between respondents and their spouses in 35% of cases.
According to a study conducted by TD Ameritrade, among all the divorced Generation Xers and Baby Boomers, 41 percent of Gen Xers and 29 percent of Baby Boomers ended their marriages due to disputes about finances.
Q: What is the relationship between divorce and the level of income of married couples?
Answer: The amount of income earned by married couples reveals the degree to which their marriage is at risk of dissolution or dissolution. According to the findings of a research conducted in the United States, the probability of divorce is greater in instances where each of the married couples earns 40 percent to 60 percent of the total family income than in cases where the woman earns less.
Another research discovered that low-income earners with annual incomes of less than 25000 USD are more likely to divorce than high-income earners with annual incomes more than 50000 USD.
Q: What percentage of couples fight over money?
According to a Cashlorette study, 48 percent of married Americans or those who live with their spouses have financial disagreements with their partners. When asked about their financial disagreements throughout their marriage, 44 percent of divorcing couples said that they did so on a monthly basis.
Q: What is the most appealing quality that a partner or potential partner should have about money?
The answer: According to a recent research by SunTrust, which included individuals who were not married or in relationships, 55 percent of those questioned indicated that the financial characteristic in their prospective spouse that appealed to them the most was a good saving and budgeting plan.