Monday, September 22, 2008

Recessions and divorce?

The Toronto Star's Do recessions foster divorce? uses data from Britain about something I think transcends borders and affects more than stockbrokers:

"A recent British survey conducted among financial analysts, stockbrokers and hedge-fund managers by law firm Mishcon de Reya suggests the downturn will prompt an upsurge in divorces among high earners in London's financial centre.

A third of current inquiries to lawyers by those deciding to break the knot, claims Sandra Davis, who commissioned the study, are linked to the credit crunch.

One explanation is that the defecting spouses of high earners are getting out before the crunch reduces the potential for lucrative settlements. Others argue that money allows couples to avoid addressing difficulties in their relationship, which come to the fore in more straitened times.

'A flagging economy clearly leads to an increase in misery,' says Stephen Jenkins, director of the Institute for Social and Economic Research. 'Whether or not it causes a rise in the divorce rate is a moot point.'"

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