Are You Financially Prepared for a Divorce?

Gavel and money

Would you save money to prepare for a divorce? A survey showed that two-thirds of Americans are unprepared financially in the event that their marriage reaches a dead end.

TD Ameritrade’s Financial Challenges of Divorce and Widowhood survey gathered information from 2,000 adults between 37 years old and above. The respondents also said that they have not prepared for the possibility of becoming a widow or widower.

The Truth Hurts

It might seem counterintuitive to tie the knot and then save for a potential divorce, but statistics indicate the ugly truth. An estimated 4 out of 10 married couples in the US decide to break up, while widowed Americans account for around 25% of people 65 years old and above.

If you live in New York, the first thing you should do when making financial plans includes looking for divorce lawyers in Long Island or New York City. The state may have the lowest divorce rate in 2016, but it does not imply that it may continue in the future.

Financial Plans

Census data revealed that only nearly 13 out of 1,000 New York married couples divorced in 2016. Experts believe that this may be due to alimony laws in the state. David Lynch, TD Ameritrade managing director and head of branches, said that having a financial plan is essential for when all else fails.

This will help you when the time comes that experiencing the burden of alimony laws might be a better option than remaining married to your spouse. Lynch described a financial plan for divorce similar to how we spend for other emergencies, such as possible disabilities or illnesses, in the future.

When you start saving for a potential divorce, it should not necessarily mean that you expect a failed marriage. You should consider it as a safety net since it is common knowledge that ending your marriage will require you to spend a lot of money.