Can Planning for Divorce Actually Save Your Marriage?

Key takeaways

Planning for divorce is a proactive financial strategy that can help protect assets and minimize dispute costs.
Prenuptial and postnuptial agreements are customizable legal tools that can specify how assets are divided and how disputes are resolved, with careful legal review.
Involving financial professionals like CDFAs can reduce conflict and ensure transparency during divorce, especially when hidden assets or complex financial instruments are involved.
Legal agreements should be reviewed by independent attorneys and prepared with care to ensure they hold up in court.
Having open conversations about finances and legal protections before marriage can strengthen the relationship and provide security in uncertain times.

Summary

The Financial Impact of Divorce and How to Plan for It

This section discusses the significant financial toll divorce can take on individuals, especially women, who often sacrifice career advancement and savings. It emphasizes the importance of planning ahead for a potential divorce by establishing prenuptial agreements that detail financial arrangements and dispute resolution processes such as mediation. Kristin Shearin, a Certified Divorce Financial Analyst, highlights how such planning can streamline the divorce process, reduce costs, and provide clarity and security for both partners.

Legal Tools for Protecting Yourself in Marriage and Divorce

This section explores different legal agreements—prenuptial, post-nuptial, and separation agreements—that can safeguard financial interests and clarify responsibilities during and after marriage. It stresses that these agreements can be customized, including creative clauses such as transparency requirements, and should be reviewed by separate attorneys to ensure enforceability. Kristin emphasizes that these strategies are especially valuable in second marriages where assets and inheritance concerns are more complex.

The Role and Value of Financial Professionals in Divorce

Kristin Shearin explains the role of Certified Divorce Financial Analysts (CDFAs) in mediating financial disputes and uncovering hidden assets, especially in the digital age with cryptocurrencies and digital payments. The costs for hiring a CDFA range between $200 and $400 per hour. These professionals can help reduce conflict, provide clarity, and assist in making informed decisions during divorce proceedings, which are often emotionally and mentally taxing.

Handling Resistance to Agreements and the Court’s Role

This section addresses issues like spouses refusing to sign formal agreements and the legal challenges around contesting prenups and post-nups. Kristin advises that unwillingness to sign may be a red flag, and in some cases, a marriage might not be advisable without these protections. She underscores the importance of having agreements reviewed independently and drafted well to withstand legal scrutiny.

Show notes

Divorce can be one of the most financially disruptive events in a person’s life. It’s not just about who gets the dog. It's about calculating the true value of a family business, and figuring out if you can actually afford the taxes on the vacation home you just “won” in court. Host Imani Moise speaks with Kristen Shearin, a certified divorce financial analyst, about the math you should do before saying “I do."

Further Reading

The Cost of Divorce

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