Financial Ramifications of Divorce

Divorce is not just about getting away from the other person. Legally divorcing your spouse is also about splitting your assets. If one spouse has brought more in way of financial assets to the marriage than the other, this can be a problem for the other spouse. Divorces often can go smoothly, right up until the money issue comes up. Spouses can get nasty really fast when money is involved. Although the law in most state supports marital equity in all things, including income and assets, there are times when the reality of the situation doesn't pan out so well. Are you ready to fight for your right to the marital assets? And remember, along with marital assets comes marital liabilities. It's hard to make a case for one without the other, so do some serious thinking in this matter.

In her book “Divorce & Money: How to Make the Best Financial Decisions During Divorce” (Ninth Edition), Violet Woodhouse, CFP notes that "Legal reality does not equal financial reality."

Decisions about custody, alimony, child support, debts after separation, and evaluation of your assets may be in line with what the law prescribes, but they may not have any basis in what works in the real world.

The true cost of divorce is rarely discussed openly. The cost of a litigated divorce in Nebraska is approximately $22,000-$25,000. Even collaborative divorce can cost $8,000-$15,000. This is money that is taking away from your future ... and often, your kids.

In divorce, everything takes longer and costs more. When you are connected to another person financially, you’re at risk. At divorce, you and your spouse are essentially selling everything you own – either to each other, or to an outsider.

Woodhouse adds, "It’s not what you get that counts, it’s what you keep."