What Are the Rights & Responsibilities of an Unemployed Spouse in a Divorce?

2023: A tough year for the tech industry

Since late 2022, it has felt like another large technology corporation announces a mass reduction in its workforce almost every day. In fact, it’s estimated that over 200,000 employees have been laid off in 2023 (as of the writing of this blog), which already exceeds the total number of layoffs in all of 2022. 

While layoffs already bring significant emotional and financial hardship to families, we’re seeing the impact of the mass tech layoffs in the family law space, as well. Long periods of unemployment may or may not be the main deciding factor in a divorce, but they can certainly add stress to a marriage and contribute to that decision. 

The determination of spousal support and division of assets are two of the most asked-about pieces of almost any dissolution of marriage case, and these questions hold much more weight now that more and more divorced couples are coming to us with one or both spouses unemployed. 

So, what does unemployment — from a layoff or otherwise — mean for divorce? It depends on the facts of each unique case, but the proceedings usually have a few key consistencies when it comes to the rights and responsibilities of the unemployed spouse. 

What happens when one spouse in a divorce is unemployed?

When one spouse in a divorce case is unemployed and the other is still employed, it can change a few key elements of the final outcome of that case, but the general process for dissolving the marriage (to use the formal term) is the same.

Once the petition for dissolution has been filed by the petitioner, and served to the respondent, both spouses should hire a family law attorney to help them navigate the complex divorce proceedings to come. 

Divorce cases, regardless of employment status, are generally handled the same way, with spousal or child support and division of property being the two biggest negotiations and settlements of the proceedings. Where employment status plays a role, however, is in calculating who should (or shouldn’t) owe spousal support, the appropriate amount of child support, and who keeps certain assets, like real property, vehicles, or other monetary assets. 

How is spousal support calculated when one spouse is unemployed?

Determining which — if either — spouse will be responsible for paying spousal support or alimony to the other and the amount of that support is a complex process. 

In Oregon, a judge will seek to understand the unique circumstances of the marriage and each individual in the marriage to ensure the determination is fair and equitable. The goal of spousal support is to ensure a smooth transition from a married couple to two separate individuals after the divorce is finalized and to allow both parties to uphold a similar lifestyle as they did during the marriage.

The court will look at things like the length of the marriage, the work experience of both parties, the accustomed standard of living for both parties, and the financial needs or existing resources of both parties. In a case where one spouse is unemployed, there are some additional factors the court will evaluate when determining spousal support.

The first is whether or not the unemployed spouse is not working voluntarily or has been laid off or unable to work due to injury or disability. If unemployed by choice, spousal support may not be deemed as necessary as if a layoff has occurred and the unemployed spouse is actively seeking employment. If the unemployed spouse needs to gain additional skills or training in order to reenter the workforce, however, transitional spousal support may be paid to help the unemployed party gain those skills. 

Another key factor the court will consider is the earning capacity of the unemployed spouse. For example, if a Vice President of Marketing was laid off from his tech job but possesses all the skills necessary to earn a Vice President’s salary upon reentering the workforce, spousal support may be impacted. On the flip side, if the unemployed spouse has been a stay-at-home parent and doesn’t have as much work experience, the earning potential will be vastly lower, and spousal support will likely be higher. 

Since each divorce case is unique, it’s not possible to make sweeping generalizations about the outcome of spousal support determinations for an unemployed spouse, and it’s best to get in touch with a family attorney to better understand how your unique situation will impact spousal support. 

How is the division of assets determined when one spouse is unemployed?

Oregon is an equal contribution state, which means that it’s assumed that all assets acquired in the marriage were contributed equally by both spouses. While this is the initial assumption, attorneys can provide evidence to the court to show why the division of property shouldn’t be 50/50.

Unemployment may play a role in the division of property and other assets, especially if it can help offset the loss of income experienced involuntarily by the unemployed spouse. 

For example, the spouse that’s been laid off and is actively seeking a new role may receive a higher percentage of assets, either instead of, or in addition to, spousal support. Or if the unemployed spouse has been the primary caretaker for the children and doesn’t have a high earning capacity, then that spouse may get to keep the home in the division of property. 

Again, every divorce is unique and should be approached as such, so a family law attorney is the best way to determine how your unique unemployment situation will impact how assets are divided in the divorce. 

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A fair and equitable divorce settlement starts with a great attorney

As family law attorneys, we understand that every couple’s marriage is different and thus every divorce case we see should be handled with equal parts care and individualization. If you’re thinking about divorce or have been served divorce papers, make sure you’re hiring a lawyer that can help you navigate the legal proceedings and come out with the most fair and just outcome. 

Contact DBMA Family Law Group to get in touch with our team of family law attorneys today!