What are the Economic Issues Surrounding Divorce or Relational Split?

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Forty percent of marriages in Canada end in divorce which is an outstanding statistic. There are more unmarried people in Canada over the age 15 than married people (News, 2010). Divorce is when two people who are married decide they are not in a healthy relationship anymore and make the decision to legally separate from each other. Many couples divorce because of various reasons such as lack of communication, abuse, affairs, and a big one; money issues. It puts its place into economics due to the supply and demand for divorce today. While divorce could have its benefits to economics, it also has several issues. The economic issues that occur are the amount of settlements and income tax; the amount one must pay in court and lawyer fees; and problems with children of divorce and child support the other separated parents must pay to one another. Those issues can put problems into their futures and also put a turn into the economy. When couples divorce it can put a huge hole in their pocket and put them in financial need.
An economic issue with divorce is that when a couple separates, they now have to pay taxes on their own. When couples get married, they will most likely get a joint bank account and pay taxes together, they are more likely to get better tax benefits. When those couples want to get a divorce, they now have to pay their taxes separately and not are able to receive from those helpful benefits such as, spousal transfers and decreasing your tax rate (Tax, 2013). When couples become ex-couples, they will have to pay two different taxes on their now separate living situations since now they have to pay two of everything rather than just one. Especially when parents get divorced and become a single parent, it gets harder...

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...on-23/child-development-news-124/divorce-can-hurt-kids-math-scores-friendships-653505.html
News, C. (2010, October 4). CBC News Canada. Retrieved from CBC website: http://www.cbc.ca/news/canada/4-in-10-1st-marriages-end-in-divorce-report-1.953894
Post, T. H. (2013, April 5). Wedding Cost: Wedding Prices In Canada Continue To Rise In 2013. Retrieved April 6, 2014, from Huffpost Living: http://www.huffingtonpost.ca/2013/04/05/wedding-cost_n_3022605.html
Seldon, L. (2013, May 30). How Much Does the Average Divorce Really Cost? Retrieved April 6, 2014, from Huff Post Divorce: http://www.huffingtonpost.com/galtime/how-much-does-the-average_b_3360433.html
Tax, T. (2013). Does Being Married Affect Your Tax Rate in Canada? Retrieved April 4, 2014, from Turbo Tax: http://turbotax.intuit.ca/tax-resources/married-tax-payers/does-being-married-affect-your-tax-rate-in-canada.jsp

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