Many of us think that two people’s union only affects their own circle. It affects both the lives of the two parties, their families, and their job. But in reality, marriage can have an influence on the economy. Oikonomia, the Greek word where economics originated, refers to the management of households. This alone hints that everything that happens inside a household can have an effect on the economy.
According to research, there is a direct link between marriages and the economy. The higher levels of marriage, the better it is for the economy. Many experts view strong marriages as a better indicator of economic growth.
For one, states with higher married-parent families often have higher income, less child poverty, and better economic growth. Marriage helps foster a positive labor market, especially among young married men. Research also shows states headed by married-parent families have far fewer violent crimes recorded.
Economic Challenges Caused by Divorce
Since marriage does have economic effects, getting a divorce can also have implications on the economy. When couples divorce, this means one household is generally divided into two. The more households there are, the more resources and power needed to run the household.
This is not the same when one passes away and the remaining spouse together with the kids wait to divide the assets. Hiring the services of an attorney can help with probate litigation. Inheritance taxes can help the economy and increases the chances of incentive to earn for those left with assets.
Don’t forget about a family’s net worth compared to individual net worth. Married couples often have a higher net worth compared to divorced couples. One can associate this with the fact that two adults in the family often means more people working, saving, and are accumulating more assets.
Divorce, on the other hand, has many financial consequences. Not all couples would be willing to divide all of their assets equally. Most of the time, one or both will suffer financially.
Financial Consequences of Divorce
Getting a divorce can be expensive in many ways. There’s the fact that the process can drag on for months or years even. Aggressive conflicts, lack of cooperation, and long disputes can put both parties at risk of spending more time and cash than necessary.
While the expenses associated with the divorce continue, so do one’s individual expenses. Think about the mortgage, child support, monthly bills, and debts, along with other recurring expenses. The financial consequences of divorce can impact the amount of income lost during the trial.
When couples stay married and continue to live under one roof, their shared cost of living is significantly lower compared to the costs. One measures the total household income minus the expenses not by individual income. In a nutshell, it becomes economically harder to maintain a household since both parties now need to handle their own separate household.
According to studies, single parents have a lower income than married parents. Low-income married-parent households may be common especially during these trying times. But in reality, two-income is still better than one.
Both parents having full-time jobs is better than a single mom or dad bringing home the paycheck. We need to remember that even if the law requires the other parent to give their fair share of child support, not everyone is doing a good job providing for their kids. The growth of single-parent households already impacted childhood poverty rates.
Saving Your Marriage
There are times when filing for a divorce will cross a couple’s mind, even after years of marriage. There are times when a marriage can still be saved. While some marriage concerns are undeniably deal-breakers, there are signs that show it is worth saving a marriage.
For instance, couples who drifted apart after having kids together usually end up reconnecting with their spouses. It will take time and hard work to get past the challenges. But for the most part, having a hard time after having kids can be resolved as long as there is still love and respect left.
The same goes if after mediation, both parties are still willing to work things out. When both parties are willing to put in enough effort to rebuild their relationship, this means you and your spouse may still have the chance to salvage the marriage. This is especially true if you both think you just need to add some spark back to your marriage.
Some couples’ marriage can no longer be saved. When love and respect are no longer existent in a relationship, it does not matter if one will have a financially difficult time coping. Sometimes, one would rather suffer financially than stay in a toxic and abusive relationship. Your divorce may have its impact on your own life and the economy. But it might be a better choice if it meant better peace of mind between you and your kids.