Introduction Recent decades have been characterized by an increase in divorce rates. In the past 150 years, there have been increasingly many cases of broken marriages in the U.S. followed by the increased divorce rates. Divorce has become extremely common in today’s society. Researchers have described divorce as the end to a marriage. It is a consequent of a failure by both couples to continue in the commitment to both marital and family roles. Divorce dates from the ancient Mesopotamia, where Athenian fore-fathers liberally allowed divorce if the person filing for it had presented sufficient reasons to the magistrate. There are various types of divorces, including at-fault, no-fault and summary divorces. Statistics show that many marriages are destined to divorce (Gordon, 2007). The social and economic hardships young families go through to raise their status to that of the middle class and ensure that children born in the families have a bright future all depend on how stable such a family is. Marriage is no longer a private agreement between two individuals but a core social institution which participates in ensuring socio-economic stability of a nation. There exists substantial controversy and uncertainty about the effect of divorce on children and the parties themselves. Research indicates that children from separated families are more prone to socio-economic challenges that can affect their further life. Little research has been done on the overall impact that divorce poses to the society (Stevenson & Wolfers, 2007). This paper will delineate the impact divorce has on a nation’s economy. A nation’s economy is impacted since divorces have some effects on the future of a labor force of a nation. Divorce has an impact on children and determines how they contribute to the economy. This paper will aim at establishing whether divorce is really necessary to end family disputes and whether the economy of a nation would be likely improved if fewer cases of divorce are witnessed. Hypothesis Marriage contributes to the social and human capital. Research has shown that intact family structures reduce government expenditures incurred through costly social programs. It has been estimated that divorce and children born out of wed lock use taxpayers money to a tune of approximately $112 billion annually and more than one trillion every decade. This paper studies the constraints the government undergoes to meet the needs of the separated families assuming that separation results in the additional negative effects on children and grownups being served under the tax payer funded social programs. Literature Review Divorce rates are said to have been doubled between 1960s and 1970s. This was the period which witnessed the rise of women’s liberation movements, the sexual revolution and the abolition of laws that restricted marriage between races. Today’s society experiences extremely high numbers of divorce cases. Divorce is often due to failure by both couples to continue being committed to their marital and family roles. Divorce dates from the ancient Mesopotamia, where Athenian’s fore-fathers liberally allowed couples to divorce if the party filing for divorce had presented sufficient reasons to the magistrate (Co