Does the current federal government shutdown impact divorce proceedings? Technically, yes. Here’s why.

While divorce proceedings are handled at the state level and are not directly halted by federal shutdowns, the current government shutdown, which began Oct. 1, actually has ripple effects that impact finances, support payments, and other aspects related to couples splitting up. Understanding these indirect impacts can help divorcing couples plan ahead and avoid unexpected delays.

Housing, Loans, and Business Concerns

Government shutdowns can slow down federal loan and housing programs. The Small Business Administration (SBA) typically pauses new loan approvals, which can affect recently divorced individuals relying on federal-backed financing to stabilize a business. HUD loans and other housing programs may experience delays as well, potentially complicating the purchase, refinancing, or transfer of a marital home. Anyone relying on federal assistance for property matters should anticipate longer timelines and discuss contingencies with their attorney or financial advisor.

Paychecks, Furloughs, and Support Obligations

With an estimated 750,000 federal employees furloughed or working without pay, income interruptions can affect divorce-related obligations. If either spouse is a federal worker, delays in paychecks may complicate child support or alimony payments. In these situations, consulting your attorney about filing for temporary relief to adjust support until regular income resumes can provide much-needed relief.

Public Assistance Programs

Some federal support programs, like Temporary Assistance for Needy Families (TANF), can be disrupted during a shutdown. However, many states maintain carryover funding into the new fiscal year, helping bridge the gap. Programs such as WIC (Women, Infants, and Children) are often funded at the state level in the short term. Families needing emergency assistance should contact their local social services office to explore available options and ensure they continue receiving necessary support.

Tax Records and Refund Delays

The IRS remains open to file taxes and process payments during a shutdown, however, many of its support services, such as support lines, are suspended. If you are gathering tax records for divorce proceedings or need income verification, you may face delays reaching an agent. Refunds may also be slower than usual. Couples counting on a tax refund as part of a settlement or property division should be prepared for potential timing setbacks. Planning ahead and keeping open communication with your attorney can help prevent surprises.

Planning Ahead During a Shutdown

While a federal government shutdown does not stop a divorce proceeding, it can create unexpected complications for finances, support payments, housing, and federal programs. By anticipating these challenges, staying in contact with your attorney, and exploring alternative resources, divorcing couples can minimize delays and maintain stability during a stressful time. Planning ahead and remaining proactive ensures that your divorce proceedings continue smoothly, even amid federal uncertainty.

Hire an Attorney

By working with an experienced matrimonial law attorney, it can help make the process of divorce smoother and more successful. If you believe it’s time to initiate a divorce proceeding, contact us and speak with a New York matrimonial law attorney today, or call 8885294543 to explore your options and protect your future.

Jillian R. Falt, Esq., an Associate in the White Plains office of Tully Rinckey PLLC, handles a diverse array of family and matrimonial law matters. Her family law practice includes pre- and post-nuptial agreements, separation agreements, equitable distribution, spousal support, child support, post-judgment modifications and enforcement, family offense matters, and child custody and access. She represents clients in all aspects of settlement, litigation and the negotiation and drafting of agreements.