Why financial planning for protection in divorce is important

| Dec 27, 2017 | divorce, Firm News

Despite the fact that four out of 10 marriages end in divorce, few people in Kentucky and elsewhere have financial plans in place to protect themselves in the event that their marriages might end. While people may feel strange about thinking about these matters in case they get divorced, doing so may be a smart choice.

Despite the risks of divorce, TD Ameritrade reports that 65 percent of married people do not have financial plans in place to protect themselves in the event that it happens. In an online survey, TD Ameritrade found that the average income of married people was $61,700, which was $9,800 higher than the average income of divorcees.

TD Ameritrade also found that 43 percent of married people felt financially secure while only 25 percent of divorcees reported feeling that way. Among divorced people, 47 percent reported that they were not saving any money from their take-home income each month as compared to 32 percent of married people. Forty-nine percent of divorced people reported that they were worried that they would run out of money while they are in their retirement years as compared to 38 percent of married people.

Financial planning may help people to have better financial security after the end of a marriage. People who are planning to marry may want to talk with experienced family law attorneys about how they might plan to protect themselves in case their marriages eventually end. People who are wanting to divorce may also want to discuss their financial situations with financial advisers as well before they file so that they might gain a better understanding of the financial impacts that the divorce might have.