Tag Archive for 'recession'

California Divorce, Recession, & Alimony

alimony-in-recessionNobel Prize winning economist Gary Becker performed a now famous study on the effects of income in marriage back in 1977.  What he discovered was that any change in income, positive or negative, makes a family more susceptible to divorce.

The results of this study are still proving true over 30 years later as the current recession in the U.S. and California specifically has seen a rise in money-related divorces, and also led to an increase in problems associated with an ancillary issue to divorce- alimony.

Popular divorce site Divorce360.com recently blogged about this very alimony trend.  Because the financial situations of many California couples seeking divorce, or already divorced, has changed so drastically in the past year, there has been a huge increase in requests for alimony modification.

We’re seeing similar trends at LegalMatch.  According to statistics compiled from all people seeking alimony legal assistance in California within the last 12 months, the overwhelming majority of inquiries involved either collection of past due alimony or termination of alimony payments.

The high level of interest in these two categories is even more interesting because they are polar opposites and come from different sides of the divorce- one being the spouse looking to alimony as income and needing all back payments, and the other being the spouse looking to alimony as a financial pitfall that he or she is trying to get out of to save needed funds.

The numbers are high and the reasons aren’t surprising.  The recession is fully reflected in all aspects of California divorce proceedings and the trend will continue as long as these tough economic times persist.

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As The Dow Plummets, Will Crime Rates Rise?

thiefNow that we are officially in the midst of a recession, commentators have begun to speculate how the economic downturn could affect crime rates. 

Some claim there is no link between recessions and increased crime.  People in this camp rely on U.S. Justice Department statistics that show crime flourished during the 1920’s, 1950’s and 1960’s-when the economy was also booming.  But wouldn’t one expect that during hard times, people who are suffering would steal to compensate for their lack of income?  While there have been reports of increased incidents of shoplifting during recessions, there may be counteractive forces at work which balance the overall property crime rate.  For instance, during economic downturns, people often move in with relatives and stay home more, both of which tend to have a stabilizing effect.    

Others have found a strong link between economic downturns and crime waves.  Those who believe this theory claim that statistics can be skewed by a number of forces.  For example, in the 1990s, when Michigan’s Ecorse Police Department retrieved dead human bodies from the Detroit River and classified them as “floating bodies,” the crimes weren’t recorded in the FBI’s Uniform Crime Report since that crime category wasn’t recognized.  Additionally, crime rates during the Depression may have been distorted by Federal Government programs such as the Civilian Conservation Corps (CCC).  In the 1930’s, the CCC took over 500,000 unemployed young men (who pose the greatest risk of committing crimes) from cities and moved them to isolated work camps where they lacked the opportunity to commit crimes.  Without these measures, would there have been a rise in crime during the Depression?  Who knows. . . .   

While the relationship between recessions and violent and property crime is debatable, it makes sense that certain crimes do in fact rise in tandem with hard economic times.  Specifically, domestic violence, alcohol-fueled crimes, and elder abuse have reportedly been increasing as families struggle with the stress of the current recession. 

What can be done?  While state budgets may be strapped, it may be cost-efficient to implement educational programs in order to prevent an increase in domestic crimes.  Another preventative measure:  don’t cut police department budgets!  If there aren’t sufficient officers in place, criminals will have more opportunities to offend.  And if the effects of decreased security resources illustrated by the recent holiday shopping tragedies are any indication, we cannot afford to under-fund law enforcement.

Stay tuned: LegalMatch is currently mining case detail related to criminal offenses since the Dow Collapsed.  Once we have a sufficient sample of this data we will advise if we see a correlation between the Dow and Crime.

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