Thursday, July 16, 2009

The Recession, Divorce...And Americans Living Beyond Their Means

There was an interesting article in the WSJ the other day that got picked up by Yahoo Finance. It's an interesting development in the context of the current recession and what couples are doing who apparently have decided that they can't stand each other anymore, and want to file for divorce. The recession is apparently causing some of these folks to put off divorce and continue to live together ("co-exist") since they can't sell their house in a down market to settle the financial claims of the assets that will be divided up and/or are afraid to go it alone in a down economy. Truly fascinating stuff from a behavioral science perspective. But perhaps it's not that surprising that a couple might find themselves forgetting why they went down the aisle, because they've been living beyond their means, spending every last buck on stuff, and now the financial stress has become bigger than them.

If you think it can't happen to you, think again. People do it all the time. If it can happen to Ed McMahon, MC Hammer, or any other celebrity who you later find out is now broke, why can't it happen to the average joe? It apparently happened to the King of Pop, and all he was was one of the biggest selling recording stars ever.

Link to WSJ Article is here

Link to Famous People who filed Chapter 11