Why Divorce Monday is booming — and how soaring mortgage rates are complicating breakups

Lawyers are used to long hours and packed schedules, but one day each year stands out as particularly busy: Divorce Monday. This unofficial term refers to the first Monday of the new year when divorce filings spike.

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Even celebrities aren’t immune to the trend. On January 6 — Divorce Monday — Jennifer Lopez and Ben Affleck finalized their divorce, just five months after their split. For many couples, the holiday season serves as a breaking point.

“Many couples often see the Christmas period as the final straw in their relationship,” Alberta Tevie, a consultant solicitor at the law firm Richard Nelson, told the Daily Mail.

While some couples make it through the festivities, the new year often sparks reflection. For those who’ve endured a tough year, January feels like a fresh start — and for some, that means filing for divorce.

But financial realities are making divorce more complicated than ever. With soaring mortgage interest rates and favorable terms locked in during previous years, separating isn’t always feasible. Unlike Lopez, who walks away with a $5 million engagement ring, most couples face harsh economic hurdles that can delay or prevent divorce.

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Dividing marital home equity can feel overwhelming, especially with today’s higher mortgage rates. In 2020, the average 30-year fixed mortgage rate was approximately 3.10%. Today, that rate has climbed significantly to 6.74%, according to Zillow.

For example: a couple with a $400,000 mortgage at a 30-year fixed rate of 3.10% in 2020 pays $1,709 in principal and interest each month. If one spouse needs to refinance at the current average rate of 6.74% that payment jumps to $2,592 — a 52% increase.

To make matters worse, most couples sign their mortgage together, making both parties jointly responsible for the debt. Donna Cates, a Certified Divorce Financial Analyst, explained that in an email to Forbes, adding that if the spouse staying in the house fails to make a payment, the other is legally obligated to cover the full amount, regardless of their relationship status.

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