If you’re divorcing now, the economy matters more than you may think. Economic forces shape divorce outcomes in Utah. Current economic conditions are having a very real, measurable effect on both alimony and property division outcomes in divorce cases.
Here’s how:
Alimony (Spousal Support)
Inflation and Cost of Living. The rising cost of necessities leads alimony payor and potential alimony payors to argue their dollars don’t stretch as far, while recipients argue they need more to cover basic living expenses. This leads to more contested alimony hearings.
Employment Markets. Volatile job markets can affect how much one is reasonably able to earn (and thus pay in alimony). Courts may be more cautious about imputing high income to an ex-spouse if jobs are harder to secure and/or if wages are stagnant.
Duration and Flexibility. Some judges consider awarding alimony for shorter durations, reasoning that volatile economic conditions make long-term predictions unreliable. Other courts are including “step-down” provisions that reduce alimony over time as the recipient is expected to gain financial independence.
Property Division
Many judges prefer conservative, low-risk solutions: ordering property sold and split, rather than letting one spouse gamble on keeping an asset that could rise or fall dramatically.
Housing Market Volatility. With interest rates up and housing prices unpredictable, one’s ability to afford the marital home mortgage payment (and thus endanger the equity). If a party cannot refinance the mortgage into his/her own name and pay his/her ex half of the equity in the marital home, this leads courts to order the house sold and net equity proceeds divided between the parties.
Investment Fluctuations. Retirement accounts, stock portfolios, and cryptocurrency values are highly volatile. Courts must decide whether to “freeze” values as of the divorce filing date or to account for post-filing gains/losses. This can dramatically shift who bears market risk.
Debt Allocation. Credit card, medical, and consumer debt loads are higher for many families. There is often less equity or liquidity to divide, so disputes over “who gets stuck with the debt” are more prominent.
Business Valuations. Small businesses are harder to value when revenue is unstable. Experts are facing greater scrutiny in explaining whether declines are cyclical or permanent.
Broader Trends
Push for Settlements. Given all of the uncertainties, more parties are settling rather than rolling the dice at trial. Structured settlements (like phased property payouts or modifiable alimony) are more common.
If you’re divorcing in Utah right now, you can’t ignore the economy. It may decide whether you keep your house, how much debt you shoulder, and how long you’ll pay—or receive—alimony.
Utah Family Law, LC | divorceutah.com | 801-466-9277