Cascading a pseudo-delete?

Greetings, for our database, we keep everything--deleting nothing; however,
to the client side, it should appear deleted. We do this via a status_cd
for each record. If the status_cd is for 'deleted' then that item is not
shown to the client-side.

Anyhow, my question is that we also use foreign keys, and I would like to
delete the one record and have the deletion cascade to all records using
that foreign key. This is no problem, until I try to no longer delete, but,
change the flag. So, my question is, how can a create a rule which
activates on delete and simply marks the record deleted then cascade that
deletion to all of the objects who are constrained to its key?

Thanks,

--Brian