Every Houston divorce attorney may have different experiences in the number of divorces they handle during an economic recession; but most do notice some kind of a change in how many clients choose to file during hard economic times. Texas divorce attorneys may see an increase in divorce filings of high net-worth clients, who may have many assets to protect.
By taking advantage of a recession and initiating proceedings now, they may reap some of the potential benefits of the economic downturn. The value of their assets may diminish, including that of their homes, stock portfolios, businesses and expensive automobiles. With diminished assets, divorce lawyers in Houston may be able to reduce their overall financial liability to their ex-spouse. It is helpful for these wealthy clients to realize that once the economy gets better, their net worth, and perhaps even their earning potential, will see a significant improvement.
On the other hand, a bad economy may actually decrease divorce rates with clients who have limited financial resources. An overall study of Texas divorce attorneys found that there are fewer people filing for a divorce during a time of economic downturn. Divorce can be an expensive endeavor, and some filing and attorney retainer fees can run between several hundred and several thousand dollars. Further, the thought of having to begin paying for two households rather than one may seem daunting for families who are working their way through a recession.
Another question that many clients ask their Houston divorce attorney is how the recession will affect them if they own a small business that is a substantial asset within the marriage. Most of the values of a client’s assets go down during a recession, which means that the fair market value of their business may diminish, as well. There is some advantage to the spouse who is able to retain the business, rather than the one who is compensated by cash or other assets, because the value of the business is likely to increase once the economy recovers. Competent Houston divorce lawyers should be able to work hard to make sure that their client receives fair, favorable compensation in cases where the spouses share the assets of a small business.
Concerns about child and spousal are also common during divorces that occur during a recession. Obviously, if the child and/or spousal support obligator’s current income as been reduced, the awarded level will be lower. This lowered amount could be beneficial for the obligator, who may see an advantage for obtaining a judgment of divorce during this time; however, when wages increase during better economic times, there may be a cause for an application for an increase of support. The spousal or child support recipient’s Texas divorce attorneys could seek that the court income average for the past several years, but the courts usually have a preference for dealing with a obligator’s current income rather than past incomes.
For more information about the advantages or disadvantages of filing for divorce during an economic downturn, contact the legal professionals at Busby and Associates. We are experienced in dealing with divorce during all types of economic situations, and we are sure to be able to walk you through the process. Call us today at 713-974-1151.