Should You Financially Plan for Divorce While Still Happily Married?

 Posted on August 16,2016 in Family Law

According to the most recent statistics, around one-third of all marriages end in divorce. That means, for every 12 couples that marry, about four will eventually call it quits. Often, this process is one full of contention, but it also comes with the risk of future financial problems. Those at the highest risk are those marriages in which at least one party is not fully aware of (or does not participate in) the financial aspects of the marriage. That leads to the question of whether or not all couples should plan for divorce, long before they ever consider filing.

Arguments Over Money and Your Risk of Divorce

While the amount of money a couple has is often irrelevant to whether or not a marriage will eventually end, those show argue over it – how to spend it, invest it, or save it – have a much higher risk of divorce than those who do not. As a result, experts have encouraged couples to talk about money early on in their relationship, long before the marriage ever starts. No matter how you decide to handle it, one thing is clear: staying open and honest about money during your marriage may very well be your saving grace. Even if your marriage does end in divorce, the process itself is often easier because both parties know what is owned and what is not, and there are fewer issues to argue over in the divorce process.

Financially Planning for Divorce during Marriage

In light of the recent studies about how money arguments can impact the risk of divorce, some have suggested the idea of a prenuptial agreement to help divorce-proof a marriage. This can be exceptionally helpful in cutting back on arguments about money during the marriage, but it also makes the financial aspect of a divorce simpler. Each party knows what they own ahead of time, and they know how money and assets will be divided. However, each party should also take additional steps over the course of their marriage to improve their chances of financial security in the event of a divorce.

Take, for example, a couple that has one breadwinner and one stay-at-home parent. Even if they have a prenuptial agreement, and even if they are able to talk openly and honestly about money, the stay-at-home parent could be at risk for long-term, divorce-induced poverty because they do not have their own source of income. A provision will likely be set aside for them, but it will be limited to whatever was set in the prenuptial agreement. This couple should candidly discuss how to ensure financial security for the stay-at-home parent, long before they ever even consider the idea of divorce. A savings account, a trust account, or even a retirement account, should they divorce later in life are all viable options.

Love for Today but Plan for Divorce Tomorrow

No matter where you are at in your marriage – be it still in the honeymoon phase, or on the edge of filing for a divorce – it is important to consider how your actions could impact your future and the future of the people you love. While you might fall out of love with your spouse, you will not fall out of love with your children. How will they be provided for if your marriage ends in divorce? How will the person that you spent years loving get by once it is all over? It is not easy to think about the possibility of divorce, but it is best to do it while you are still loving.

If you or someone you love is already planning on filing for divorce, the DuPage County divorce lawyers at Mevorah & Giglio Law Offices can help. Skilled and dedicated, we work to protect your interest, and your financial future. Contact us at 630-932-9100 to schedule your free initial consultation today.

Sources:

http://nytimes.com/2014/12/02/upshot/the-divorce-surge-is-over-but-the-myth-lives-on.html?smid=fb-nytimes&smtyp=cur&bicmp=AD&bicmlukp=WT.mc_id&bicmst=1409232722000&bicmet=1419773522000&_r=4&abt=0002&abg=0

http://apa.org/helpcenter/money-conflict.aspx

http://usatoday.com/story/money/personalfinance/2016/06/25/figuring-divorce-into-your-financial-plans-fatalistic-but-smart/85840246/