Most divorcing couples really do try to arrive at a settlement that works for both partners. Unfortunately, what may look fair right now often doesn't remain equitable over time.

Robert Matheson CDFA, CPA, CFP, Registered Investment Advisor

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In a typical marriage, the wife earns less than her husband. The family's lifestyle is quite naturally geared to the higher salary. Both partners invest in the more lucrative career. So, when they divorce, the woman's earning and retirement prospects are often lower than her spouse's. She also loses all of her investment in her husband's career. In a few years, she may use up her entire property settlement, just to make up for the shortfall in her new life.

Meanwhile, her husband feels that he is giving away half his property and may also be paying maintenance and child support. Statistics show he generally has the ability to recover quickly. His earning potential is his greatest asset.

So, although the original property division may have been scrupulously equal, it wasn't equitable. In fact, studies show that one year after a typical divorce, the standard of living of the woman and minor children has dropped by 27%. The man's, by contrast, has risen 10%. So, it's clear that tangible assets don't last. And yet,divorce courts traditionally overlook intangible assets like salaries, benefits and potential earning power.


What's missing in most divorce processes is financial expertise. That's why we use high tech software to graph out today and the future. We can project various scenarios for the divorcing couple, each based firmly on all the assets of the marriage--including career assets.

In this way, both partners have a clearer view of their financial futures. Only then can they approach a settlement that fully addresses the financial needs and capabilities of each.

A qualified Certified Divorce Financial Analyst (CDFA) can accurately forecast the long-term effects of the settlement. A CDFA is a financial professional who has been trained by the Institute for Divorce Financial Analyst.