Financial pressure has a way of finding its way into almost every part of a marriage.
A job loss. A business that suddenly isn’t producing the income it once did. A mortgage that feels increasingly difficult to carry. Credit card balances that keep growing. Investments that have declined in value.
When California families experience financial uncertainty, those pressures can magnify problems that may already exist within a marriage. But there is another side to the story that we see in family law: the same difficult economy that may contribute to marital stress can also make couples hesitant to divorce.
At William Strachan Family Law, we believe that distinction is important.
Economic hardship doesn’t necessarily cause divorce. And a struggling economy doesn’t mean divorce rates will automatically rise. What financial uncertainty can do is change the circumstances surrounding a marriage—and significantly affect the decisions a couple must make if they choose to separate.
Financial Stress Can Put Additional Pressure on a Marriage
Money disagreements are difficult even during good economic times.
When income becomes uncertain, the stakes become considerably higher. Couples may disagree about spending, debt, employment decisions, housing or how much financial risk their family can tolerate.
For a marriage that is already struggling, those pressures can bring existing problems to the surface.
Job loss can be particularly disruptive. Research examining U.S. Census Bureau data has found circumstances in which displacement from employment was associated with an increased probability of divorce, although the effect varied significantly depending on the family’s circumstances.
That is why we wouldn’t tell a client that “the economy caused your divorce.”
Usually, the reality is more complicated.
Economic pressure may not create the underlying problems in a marriage, but it can make existing problems much harder to ignore.
A Bad Economy Can Also Delay Divorce
There is an interesting contradiction when it comes to divorce and economic downturns.
Divorce can be expensive.
One household becomes two. A couple that previously shared a mortgage, utilities, insurance and other expenses may suddenly need to support two separate households.
That can be particularly challenging when employment is uncertain or housing costs are high.
Research examining the Great Recession found that the national divorce rate actually declined sharply in 2009 before beginning to rebound. Researchers estimated that approximately 150,000 fewer divorces occurred from 2009 through 2011 than would otherwise have been expected. One explanation is that economic hardship made divorce financially more difficult for some couples.
Other research has similarly found a negative relationship between unemployment and divorce rates, supporting the theory that the financial cost of divorce can cause some couples to postpone separation during difficult economic periods.
In other words, financial distress can push some marriages toward divorce while causing other couples to delay a divorce they were already considering.
California Families May Feel Those Pressures Differently
California presents its own economic challenges.
Housing costs, mortgages, employment uncertainty and the expense of maintaining two households can all become important considerations when a couple is contemplating divorce.
As of June 2026, California’s unemployment rate was 5.2%, according to the U.S. Bureau of Labor Statistics. Total nonfarm employment was growing only modestly year over year, while sectors including construction were experiencing employment declines.
Those numbers don’t tell us whether any individual marriage will survive or end.
But they do provide context for something we regularly discuss with clients: your personal financial circumstances matter when planning a divorce.
Should You Wait to Divorce Because of the Economy?
This is where William’s approach is very practical:
Don’t make a major family-law decision based solely on headlines about the economy. Understand what the numbers mean for you.
For some people, waiting may make sense.
For others, waiting could create additional financial exposure or prolong an arrangement that is no longer workable.
Before deciding, we want to understand questions such as:
- What are your current income and expenses?
- Is either spouse’s employment at risk?
- Do you own a home, business or investment property?
- What debt exists?
- Are significant assets increasing or decreasing in value?
- Can the family realistically support two households?
- Is one spouse financially dependent on the other?
- Could spousal or child support become an issue?
- Are there reasons—financial or otherwise—that make acting sooner important?
There isn’t one answer that applies to every family.
What Happens to the Family Home in an Uncertain Market?
For many California couples, their home is one of their largest assets—and one of the most emotionally difficult parts of a divorce.
Should you sell it?
Should one spouse keep it?
Can that spouse afford the mortgage independently?
Can the spouse who wants to keep the home qualify to refinance?
What happens if the home’s value changes significantly while the divorce is pending?
These aren’t simply legal questions. They are financial and strategic questions as well.
We encourage clients to look beyond “Who gets the house?” and ask a more important question:
“What outcome puts me in the strongest financial position after the divorce?”
Sometimes keeping the house is the right answer. Sometimes selling it is. And sometimes an asset that feels important emotionally may create a financial burden that becomes much harder to carry after divorce.
Business Owners Face Additional Considerations
Economic downturns can create particularly complicated issues when one or both spouses own a business.
Revenue may decline. Profitability may fluctuate. Customer demand may change. Financing may become more difficult. And suddenly spouses may have very different opinions about what the business is worth.
Business valuation can become an important issue in a California divorce involving a closely held company or professional practice.
Timing can matter as well.
If a company’s recent performance has deteriorated because of broader economic conditions, determining an appropriate value may require careful analysis of whether those changes are temporary, structural or specific to the business.
This is one reason we frequently work with financial professionals when the circumstances require it.
Don’t Let Fear of the Economy Keep You From Understanding Your Options
One of the biggest mistakes someone can make is assuming:
“I can’t afford to get divorced right now.”
Maybe that’s true.
But maybe it isn’t.
There is a significant difference between deciding that divorce is financially impractical after understanding your situation and simply remaining frozen because you don’t know what divorce would look like financially.
At William Strachan Family Law, our role isn’t to convince someone to get divorced.
Our role is to help you understand your legal and financial position so you can make an informed decision.
Sometimes that means moving forward.
Sometimes it means planning carefully before filing.
And sometimes it means recognizing that now may not be the right time.
A Difficult Economy Makes Divorce Planning More Important, Not Less
Economic uncertainty can make divorce more complicated, but it also makes thoughtful planning more valuable.
Before making major decisions, it can be important to understand your assets, liabilities, income, housing options, support exposure and longer-term financial needs.
The goal shouldn’t simply be to “get through” the divorce.
The goal should be to emerge from it positioned to move forward.
That is the approach we take at William Strachan Family Law.
We look at the entire picture—your family, your finances, your priorities and the issues that could affect your future—and develop a strategy appropriate for your particular circumstances.
Talk With William Strachan Family Law
If financial uncertainty is affecting your marriage or making you hesitant to consider divorce, you don’t have to make the decision without understanding your options.
A consultation can help you understand what a California divorce could mean for your property, income, home, business, support obligations and financial future.
Contact William Strachan Family Law to discuss your circumstances and determine what steps may make sense for you.
This article provides general information about California family law and is not intended as legal or financial advice for any individual situation.
