Sadly, January is the biggest month of the year for divorces.
Troubled couples stay together through the holidays, then, seeking a fresh start in the new year, make the decision to separate. Nobody plans on getting a divorce, but those who decide it’s necessary should lay down the groundwork to ensure the process is as smooth as possible.
This may start with the hiring of a divorce lawyer, and perhaps a psychologist, but it’s just as important to talk things through with your financial professional.
Everyone has their own concerns and priorities when it comes to divorce, but one nationally recognized entrepreneur and finance author shared an unorthodox, yet effective, method of divvying up assets.
Because divorce often leads to court battles and financial disputes, the author and his wife decided to take their money completely out of the equation by putting it in a corporation they co-owned equally. Then, they agreed to a one-page divorce agreement focused solely on their children’s best interests and paid an attorney a small fee to file the decree.
Two years later, after they were past the emotional chaos that accompanies the breakup of a family, they figured out an equitable financial situation — also a one-page agreement that did not involve attorneys.
Too often in marriages, one spouse trusts all the financial matters to the other without an understanding of where their money is being invested. This could explain why a recent survey showed divorced women can have more financial peace of mind than those who are married.
Even though divorced women typically end up with less household income than when they were married, the fact that they become more in control of how their money flows in and out of the budget, and can exercise their own brand of financial thrift and savvy, gives them a greater sense of confidence.
Regardless of whether we’re working with divorced or married couples, it’s our hope that both parties understand their financial situation. If you ever want a walkthrough on where your money is going, give us a call.
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The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.