Utah, Cars, Debt, and Divorce

Utahns loves their cars.

We’re an Intermountain West state, which means everything is far from everything else. We drive our cars to get to all these far-flung places.

Turns out, Utahns love their cars a bit too much — at least I think that’s what the data say.

Utahns’ Average Yearly Spend on Cars

A new report from the Salt Lake City Council talk about housing in Salt Lake City. Like most bureaucracy reports, it talks a lot about problems that government cannot fix and will only make worse. (Sorry, you just got a glimpse of my view on government in general, and Salt Lake City government in particular.)

On page 14, though, it contains an interesting tidbit: Utahns spend, on average, more than $18,000 per year to maintain two cars per household.

(Note: That number seems high, but it includes all costs for owning a care, e.g., gas, payments, repairs, taxes, registration, etc. And, keep in mind, these numbers are average, so many people spend less and, amazingly, many spend higher.)

Utah’s Average Yearly Household Income

According to a 2014 Salt Lake Tribune article, the average income for Utah households is $59,770.

That number might seem okay (it ranks pretty high nationally), but it’s disturbing when you compare it to the amount Utahns spend on their cars.

Just north of $18,000 divided by $59,770 equals Utahns spending over 30% of their yearly household income on two cars.

30%?! WTH?!

When you figure a typical family spends around 25% to 40% of household income on housing, two cars families are spending up to between 55% to 70% on transportation and housing.

That is incredible. Two expenditures account for an amazing high percentage of total money spent by Utah families.

This isn’t good.

Here’s Why It’s not Good

Simply put, when you spend the bulk of household money on cars and housing, you don’t have money left over for other really important things.

For example, there’s little money left over for healthcare, education, charitable giving, vacations.

Despite this, we still spend money on these things, which means we go in to debt to pay for vacations and the like. (The average Utah household carries over $117,000 in debt.)

Implications for Utah Divorces

These numbers have a couple implications for Utah divorces.

First, personal debt is not good on a number of levels. It creates stress and increases fighting among married couples. Fights over money and debt are a contributor to divorce. (They contribute. They probably are not the cause but more of a symptom of other deeper problems. But still, they contribute and they surely don’t help.)

Second, when divorce happens, debt gets divided and straddles everyone with bills they couldn’t pay during the marriage and certainly can’t pay during divorce.

A big part of the debt-load problem is cars. When you have cars that eat up 30% of your yearly total household income and you divorce, the impact of that debt load becomes all the more unbearable.

If you can barely make it when times are good, you certainly can’t make it when times turn not-so-good.

Possible Solutions

As I see it, there are a few possible solutions to this debt/car problem:

  1. Buy less car.

Yes, buy less car. No one needs a new car. No one needs a car that’s too big or too expensive. That’s status symbol stuff, and buying for status leads nowhere good.

Sell your car and buy a cheaper one. Trade in your car for something that works better and is cheaper.

  1. Sell a car and drive one.

Heresy, I know. But if two cars cost $18,000 per year to use and maintain, then one car will cost somewhere in the neighborhood of $9000.

That one choice saves 15% of a family’s total household income.

  1. Drive less.

Less driving means less spent on gas and repairs. You could bike to work or carpool instead.

  1. Pay off your car loan and never finance a car again.

Cars are the single worst investment you can make (other than a nightclub or gold). They drop in value like a rock. Please, don’t finance an item that drops so precipitously.

(Note: all of our clients who come in and discuss their debts with us. So many are upside down on their cars and still have another three years of payments to make. These cars are like millstones around their necks. It’s bad. Those who don’t have car debt are much better able to handle their new post-divorce reality.)

One nice perk about saving up for a car: you’ll never overspend. Everyone has a tendency to buy too much car when they finance. If you pay cash, that won’t happen.

  1. Pay off all debt.

The problem isn’t just with car debt; the problem is all debt. Paying off debt will alleviate so much stress and will cause you and your spouse to work together on a common cause. That bodes well for marriages.

(To start your debt-free journey, I recommend Dave Ramsey’s Total Money Makeover.)

Protect Your Money And Your Family

We remove fear associated with divorce, protect your money & maximize time with your kids!

We're here to help. Let's determine your best options.

Call Us 24//7 at 801-685-9999 to Speak with a Live Representative

Utah Divorce FAQs
Top 100 Divorce Blog
What Clients Are Saying…
BrownLaw icon
Excellent
Brown Family Law
4.8
Based on 918 reviews
Great support, Russell and Connor were amazing and got my case dismissed in only 2 months. Great communication with weekly calls. Easy to work with and were very conscious on not overspending my budget. Great team.
Response from the owner:Daniel, thank you for the kind words, and happy Russell and Connor did well for you.
Anne Greyson long was great to work with she really listens and fights for her clients thank you so much for all your hard work
Response from the owner:Thank you, Heather. Glad Anne-Greyson helped you so well.
You get what you pay for, and the Brown Family team is worth every penny. We truly appreciated their team-based approach, making sure that every detail of our case was thoughtfully handled. They were incredibly easy to work with, kept us informed throughout the process, and made sure no question ever went unanswered. By far the best family attorneys I’ve worked with, and the only ones I’ll call if I ever need legal help again.
Response from the owner:Chris, thank you. Glad we were able to guide you through your process.
Andrew made the whole process smooth and quick! Kept me updated on any changes, and followed up with me constantly!

Made me feel at ease throughout the whole process and made sure I felt seen/ heard!
Response from the owner:Joselyn, thank you for the kind words.
David Handy is my attorney and he is excellent. He understands my cases and is well informed to defend my needs and the needs of my kids. He is supportive and compassionate. Telling me how things are and what to expect. He does very well with my high conflict cases (protective order and divorce). I highly recommend him and the Brown Family Law firm. Everyone I have talked to is helpful. Especially Conor Schetzel who is currently the paralegal on my cases.
Response from the owner:Suzanne, thank you and glad David has taken care of you.
Nathaniel Garrabrandt and Brown Family Law is where I send people who are seeking Divorce. Highly professional and compassionate. Thank you!
Response from the owner:Jaren, thank you for the referrals.
I cannot say enough good about my experience with Brown Family Law. Ray Hingson and paralegal Carren did an excellent job with my case. I will definitely use this firm again for any legal issues.
Response from the owner:Meghann, so glad Ray and Carren took good care of you.
I have worked with Andrew Christensen many times in a variety of situations. I am very impressed with his friendly demeanor in a difficult situation. I would highly recommend him to you without any reservations.
Response from the owner:Thank you, Monica.
Highly recommend Brown Family Law. Life is hard, divorce is harder, and Andrew Christensen is your guy to help you through to the other side.
Response from the owner:Mike, thank you for the kind words and the referrals.
When you’re going through a tough time and need legal help, this firm isn’t just a one-person operation. It’s a team of attorneys who work together to support you every step of the way. So you’re not just getting a lawyer, you’re getting a legal team behind you.

Navigating the legal system was a steep learning curve for me, and my situation was fairly complex. What stood out about this law firm was the way multiple attorneys collaborated to address my case. It wasn’t just one person working in isolation, but a team supporting each other to find the best path forward. That kind of collective effort is a real strength, especially in hard out complex situations like mine.

There was one issue I felt should have had a different outcome with the court. When I brought it up, the team responded in a very professional and respectful manner, which I truly appreciated. It came to my understanding that the legal system sometimes works in a way that is distant than I thought. This was presented to me in a way that someone outside of the legal system could understand.

In my experience, this firm takes the time to not only assist you, but also help you understand why things are happening. That made a big difference for me, and it’s something that really sets them apart.
Response from the owner:David, thank you for our conversation and taking the time to leave this review.
yH5BAEAAAAALAAAAAABAAEAAAIBRAA7

Categories

Related Posts