How Does Economy Affect Divorce Rates

Published on May 6, 2016

According to statistics, the number of people who divorced increased in 2012 to almost 2.4 million. The numbers had been growing for the last 3 years after the recession ended in 2009. It is believed that there is strong correlation between how the economy works and cases of divorce.

Direct Impact of Economy

Economic growth has been found to increase the divorce rate. When economy grows, it helps contribute to formation of new homes. It also boosts the demand for new homes and home appliances. It also increases the number of divorce cases reaching family lawyers in sydney. According to leading experts, whenever economy rebounds out of recession, there are big changes in family dynamics. Not only are the divorce rates affected, even the birth rates increase. It is expected that these rates will continue rising as long as the economy does well because families put off these major events to act upon later when the finances are good.

Biggest fall in Divorce Rate

One of the biggest decline in divorce rate occurred in 2009, at the peak of the economic recession. Statistics show that divorce rate increased by almost 100% between 1940s and 1980s. The biggest change came in 2009 when it fell by one third. This was the biggest record in the past 40 years and family lawyer offices saw the smallest number of cases in their long history.


It has been seen that an increase in divorce rate has been paralleled by an increase in the formation of new households. Between 2013 and 2009, more than 5.3 million new homes were formed. The numbers were the lowest in 2009. So when economy grows, there is more demand for condos, apartments, and all kinds of home appliances and furnishings. This happens because divorces led to creation of 2 households in place of one.

Underlying Necessity & Limitations

Once divorced, women have higher chances of looking for jobs as compared to their married counterparts. This is because they have a ready necessity. A slow economy doesn’t offer them many opportunities, so couples are more likely to continue in a difficult relationship during such times. Because they have to bear the child care, they cannot afford to go jobless. Statistics also prove this point clearly. In 2011, around 67% of divorced women were working. Around 60% of married women were working. The unemployment rate among women continued falling because of growing economy.

Studies show that the per capita income of women falls by up to 15% after they get a divorce. Divorce can have a major impact on the economic well being of women. So it makes more sense for couples to continue with their relationship until the economic conditions are not normal.