In cases where a couple is already in the process of divorce, this economy forces everyone involved to figure out new ways to structure the settlement. Couples and their attorneys and certified divorce financial analysts have to be creative, and do their best to equalize both benefits and losses in the final divorce agreement.
Divorce usually means selling and buying houses. In this market with house values at all-time lows and financing questionable, selling and buying a house becomes much more difficult.
Even if you are able to sell your family home, the value is often below what you paid for it, and especially for a woman who has been out of the work force for a significant amount of time, getting financing for a new home is often difficult. These realities will alter the settlement process.
When a couple owns a business together, decisions must be carefully made to insure an equitable outcome. Some couples decide to sell the business and equally take the loss or the profit.
Others decide to continue working together until a better economic climate. Delaying divorce or negotiating the business division at a certain date in the future is also a possibility. Couples may just need to sit tight on certain final decisions until the economic picture improves.
Retraining or additional education may also be necessary for one party, and that should be factored in any divorce settlement and started as soon as possible.
In the meantime, both parties will need to cut back on spending. However, psychologists and grief specialists like Therese McKechnie of Shawnee Mission, KS tells us "two of the most common ways people fill that emotional void when a relationship fails is by spending and looking for new relationships."
In this economic climate, using your credit card or dipping into your retirement funds early can create more havoc in both your current and your long-term financial situation. Getting into new relationships are usually expensive as well.
Newly divorced men often try to impress a new potential partner that they have more money than they actually have. Newly divorced women often get into an unhealthy new relationship to feel more secure about their own financial situation.
In the meantime, the financial bottom line is getting worse every day. Both men and women can make bad choices simply because they need reassurance to offset feelings of insecurity about the future in general.
Whether you decide to divorce or not, getting solid financial advice from people you trust and taking an honest look at what you need to do to survive financially is the first step for any couple.
According to financial advisor Shalon Doney of Merrill Lynch in Kansas City, MO, "Your dream team would be an attorney, a financial advisor, an accountant and a psychologist. These professionals should be in place as early in the process as possible."
In any case, face your financial situation head on and budget to keep your expenditures in line with the money you have. Everyone seems to be tightening his/her belt, but those who are anticipating or experiencing divorce, may have to cinch it up more than is comfortable and more than expected.
However, remember this fact: money does not buy happiness. One’s attitude toward life and money is much more important than the actual dollar figure in our bank account or portfolio.
As Suzy tells women going through her Midlife Divorce Recovery Boot Camps, "Regardless of your situation today, your future is up to you! Your life can be as wonderful or as miserable as you decide it will be." That’s true for everyone.
This new economy is forcing all of us to take a serious look at what is valuable and hopefully we can focus more clearly on those things. Getting your core priorities straight is helpful whether you end up divorcing or taking this opportunity to make your marriage stronger.
