The economic fallout from the coronavirus has forced millions of Americans who have lost jobs and businesses to seek loans to help them stay afloat.
But there is another reason Americans are seeking loans in droves: for divorces.
According to the financial information platform Loanry.com, the number of people inquiring about divorce loans has risen by 62% in 2020 from 2019. The analysis found that the biggest increase is taking place in the South, with eight southern states in the top 10.
Leading the pack is Tennessee with a 79% increase in the number of loans requested. Texas followed with a 74% increase, Georgia jumped 73%, Florida increased by 71%, New York increased by 68%, California saw a 67% increase, Arkansas jumped 67%, South Carolina jumped 63%, Alabama saw a 62% increase and Mississippi increased by 60%.
“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,” said Ethan Taub, founder of Loanry.com, in a statement.
The site suggested that the high number of loans being requested in Tennessee (79%) could be attributed to both the state’s relatively high divorce rate of 3.5 per 1,000 people combined with a relatively low median household income of $81,900, which is more than $30,000 less than that of the average California household.
Tennessee residents also topped the list of 10 states for Googling information about divorce and divorce loans in 2020, the analysis found. The other states busy seeking out such information were Arkansas, Mississippi, Georgia, Alabama, Oklahoma, Texas, Utah, South Carolina and Kansas.
The most expensive state for uncoupling, Loanry.com’s analysis found, was California, which stood above the rest at $14,235. New York followed at $13,710, Delaware at $12,955, Massachusetts at $12,800, Texas at $12,700, New Jersey at $12,600, Connecticut at $12,560, Georgia at $11,800, Colorado at $11,630 and Virginia at $11,650.
It cost an average of $10,164 to get a divorce in Tennessee, the analysis revealed.
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.