A comedian once joked that he had been married and divorced so many times that the next time he was going to find a woman he didn’t like and just give her his house. Divorce is no laughing matter however for families trying to cope with the emotional and financial issues that this situation can create.
While the statistics vary widely, we know the divorce rate in our society is significant. We also know that, in general, men recover financially from divorce in three-five years, while women become financially destitute post-divorce in seven-ten years! Better financial planning before the divorce settlement would improve the financial fortunes of more women post-divorce.
Divorce law varies by state and your most important advisor is a competent divorce attorney to protect your legal rights and options in the divorce settlement. A wealth manager experienced in divorce financial matters can be a valuable member of the divorce planning team as well, helping you deal with income, investment and taxation issues.
From a financial standpoint, divorce planning involves an equitable division of assets, income and debt. A common financial mistake many women make during the divorce process is insisting on keeping the family home. The costs of home ownership is often too high for her income and the divorcee many times does not receive sufficient liquid assets to draw upon in tight times. A better planning approach is to take an unemotional view of the home and to sell it if necessary to ensure the woman divorcee has sufficient liquid resources to meet her needs during the post-divorce transition.
We understand the financial planning issues connected to divorce and can assist you or someone close to you develop the best possible divorce outcome working as part of your advisor team.
