Divorce
isn't just emotionally wrenching, it can be financially disastrous for both husband
and wife. And in marriages where one spouse has worked
and the other hasn't, the ramifications are steeper, especially in regard to retirement
savings. "It's very different for a dual wage-earning
couple versus a couple with a single wage-earner," says Lili Vasileff, a
Certified Financial Planner and president of the Association of Divorce Financial
Planners. "There's a huge disparity. The person who's been working can generate
savings and have the possibility of having them matched by an employer. The nonworking
spouse needs liquidity. They're not thinking down the road."
The upshot: It's not uncommon for wives to get the house while husbands keep retirement
benefits. But that division of assets can prove to be a big problem, says Amy
Whitlatch, a Certified Divorce Financial Analyst in Cincinnati. "Will you
have the cash flow to stay in the house after you divorce? It's often much better
to sell the house and divide the proceeds and retirement funds so both parties
walk away with a nest egg and cash," she says. Facing
divorce? Protect your assets.
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| 8 ways to protect your assets | |
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Posted: April 23, 2007 | | 
