Divorce Loan Demand Rises 62% Among Americans

The coronavirus has had many negative effects on the United States, but the effects have been especially noticeable on the economy. Millions of Americans have lost jobs and businesses and are being forced to seek loans to “help them stay afloat.” 

Also, Americans are seeking loans for divorces. Apparently, the number of people seeking divorce loans has risen 62% in 2020 from 2019. The data shows that the biggest increase has been in the South, with eight southern states in the top 10. 

The leader is Tennessee with a 79% increase followed by Texas (74%), and Georgia 73%). Other Southern states in the top 10 are Florida (71%), Arkansas (67%), Alabama (62%) and Mississippi (60%). 

According to Ethan Taub, founder of Loanry.com, “2020 has been a stressful year, more stressful than most, and sadly we have seen the strain of this year take its toll across the board, including in the marital home.” 

According to the site, it is quite possible that the drastic increase in Tennessee could be a result of their high divorce rate and low median household income. Tennessee also lead the list of top 10 states that googled information about divorce and divorce loans in 2020. The average cost to get a divorce in Tennessee is $10,164, which is less than it costs in California and numerous other states. 

“Loanry.com noted that the divorce rate in the U.S. has been steadily declining in recent years, with a drop from 4 to 2.9 per 1,000 people since 2000. However, a definitive divorce rate for 2020 has not yet been announced.”

See Jacqueline Sergeant, Divorce Loan Demand Rises 62% Among Americans, Financial Advisor Mag, December 10, 2020. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.