"Annuity.com is the #1 provider of annuity content on the internet." - Bill Broich

Annuity.com
  • Home
  • Articles
    • Annuities
    • Bonds
    • Estate Planning
    • Investing
    • Retirement Planning
    • Social Security
  • Invited Authors
  • Resource Library
  • Honors
  • Search
  • Menu Menu

Joe Edgeworth
Joe has been a financial planner since 1992, working with individuals, families and business's. His company focus's on teaching people how they can invest their money safely, with a 100% guarantee of their principle, earn a very respectable rate of return, and have income guaranteed for their lifetime. Website: edgeworth.retirevillage.com

Office: (800) 824-8609 | The Edgeworth Insurance Group

Divorce Can Be Very Costly To Retirement Planning

June 4, 2017/in Investing, Retirement Planning/by Joe Edgeworth

Make Sure You Understand the True Costs

No one wants to think or talk about divorce, but the reality is, it does happen. Many people who plan to get divorced hold the misconception that they will be able to maintain their current financial lifestyle.

“Two can live as one” As the old saying goes. While it can be true, the norm is that divorce is costly. Not only lawyer fees, but now there are two separate households which must be maintained. Both households will have separate utility bills, property taxes, maintenance fees, etc. If you had two incomes covering expenses, now there will be only one per household.

Even if both people downgrade homes, it’s still going to be more expensive than they realize. Student loans, credit-card balances, and other debts are now the sole responsibility can be one person, instead of two.

Studies show most divorces are caused by financial stress. Now, unfortunately, a divorce could compound that stress and lead to a messy divorce instead of hopefully an amicable one. Macropodia data shows the hidden costs of divorce reduce assets by 50% and that divorce is the most significant cause of women applying for welfare.

Nearly half of all American families fall into poverty after a divorce.

It’s not just financial problems, but psychological and emotional problems can arise. Divorce can lead to depression, anxiety and other mental and emotional problems that affect the persons’ ability to work and live normally. Often this leads to required expensive psychological and psychiatric help. Plus, there are added hidden expenses if there are children.

By age 50, couples still married have nearly four times the amount of assets than comparable couples who divorced. Marriage therapist Kenneth Elliott says couples should strongly consider if a divorce is the right option.

“Most couples divorce over financial problems not realizing that financial problems can be fixed,” Elliott said. “They should look at ways to fix their finances before getting divorced whether that be working with a budgeting professional, financial planner, debt consolidation company or accountant. If they can successfully ride out the financial turbulence, most couples will find that they no longer want to get divorced. Long-term, rekindling a marriage is far less costly and stressful than jumping into a divorce.” 

If a couple decides to get divorced, they should do everything to make it amicable. It’s best always to consult an attorney and, ideally, the couples should work to make the event as compatible as possible.

There are also alternative places to seek help such as web-based http://www.WeVorce.com. WeVorce offers self-guided divorce solutions that can help couples get divorced in less than 30 days, provide the financial mapping to so couples can see the true costs and provide divorce documents that are court-compliant.

A web-based service may be a far cheaper way to get divorced, but they often require more personal work and it’s only beneficial for couples seeking an amicable divorce.

Remember, the more drama in your relationship, the more expensive it is going to be. Try to salvage a marriage if you can. If you can’t, do it the right way: have a cool head and an honest inventory of how it will affect finances and life.

Remember: Assets, including retirement accounts, will be split, so plan accordingly.

 

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Your Free Safe Money Guide


Our 20th edition, the standard of the industry.

Free Immediate Download
View Best Annuity Rates

Recent Posts

  • 5 Mistakes Investors Make When They Fail to Keep Their Cognitive Biases in Check
  • Avoid These 5 Common Retirement Mistakes 
  • In These Trying Times, Don’t Lose Your Grip On Your Finances
  • Are You Struggling To Build Up Your Nest Egg? Ask Your Tax Expert About The Retirement Savings Contribution Credit.
  • Economic Woes Push More Americans Into Predatory “Quick Cash” Loans

Categories

  • Annuities
  • Bonds
  • Estate Planning
  • Investing
  • Retirement Planning
  • Social Security

Archives

Free Safe Money Book

Free Safe Money Guide

Free Social Security Claiming Guide

© 2022 Annuity.com | A National Organization Focused on Truth, Transparency, and Trust.

For Licensed Agents | Find An Agent | About | Contact | Glossary | Code of Ethics | Terms of Use |  Privacy Policy | Website Accessibility

Web Design by BPA

Scroll to top