7 Things Advisors Need to Know About Divorce

The chances are high that at least one of a financial advisor's top clients will face a divorce. Statistics show that roughly half of first-time marriages end in divorce. Many divorced people remarry, and their second and third marriages are even more likely to end. These are just some of the statistics shared this week by Lili Vasileff, a divorce planning practitioner and author based in Greenwich, Connecticut, during a webcast hosted by IncomeConductor's Sheryl O'Connor. Besides the emotional strain that is often associated with divorce, splitting up a marriage also comes at a big financial cost, Vasileff warned. Couples who are in agreement spend an average of $15,000 simply to dissolve the union, but the biggest effect is on the couples' newly independent long-term financial picture. Simply put, people often end up significantly less financially stable after a divorce, and their retirement goals can easily be jeopardized. This is especially true if one member of the couple earns significantly less than the other, or if there were other power imbalances in the union that leave one member in a poor position to take charge of their own finances. The good news is that a well-trained and empathetic planning professional can do a lot to help both members of a divorcing couple navigate the potential financial pitfalls. The divorce might not be any less painful on an emotional level, Vasileff said, but a lot of additional suffering can be mitigated. See the slideshow for a review of seven things all financial advisors should know about divorce, drawn from the IncomeConductor webinar and Vasileff's blog.