11 Mar Even billionaires are concerned about the “costs” of divorce

Billionaire T. Boone Pickens was recently divorced from his 4th wife and chose collaborative practice to settle his divorce.

For the whole story, go to http://www.bizjournals.com/dallas/blog/2013/03/t-boone-pickens-on-how-to-save.html?ana=e_abd&u=rk2Eh9uif4Sgj7UM9KhZGpj2jD7&goback=%2Egde_2936590_member_219548098

“The collaborative approach saves both money and emotional wear and tear on families.” Pickens said.

Should non billionaire couples consider the costs of divorce before choosing how they divorce?  Couples should do their research about different processes and the costs of each process.

Creating a  separation agreement with the help of a mediator means you share the cost of one mediator.   If you are choosing the collaborative law approach, you are each working with your own lawyers however,  much of the work can be taken on with the help of  other collaborative team members.

If you have a family professional, rather than your own lawyers,  they help to create and draft a parenting plan.  This is  a shared cost (usually at a lower hourly rate than lawyers).  If you use the assistance of a divorce financial professional, like a Certified Divorce Financial Analyst (also usually at a lower hourly rate than lawyers) to help with gathering the financial information, you’re sharing that cost (and the work too as there is usually one spouse that has handled all the family finances and is better at accessing all the financial statements and documents).

Billionaires become billionaires not only because they make millions… they also recognize when they have the opportunity to save a million or two.

26 Jan Are you Financially Prepared for Divorce?

“Why didn’t I pay more attention to our family finances?”

I frequently hear this from women who find themselves facing divorce.  This is the time for women to start to make constructive and knowledgeable decisions about their money and their future. It’s never too late to get started.

Here are some steps you can take to get financial prepared for your divorce. (Frankly it’s good advice even if you aren’t facing divorce)

Pay Attention to the Household Finances
You should attend meetings with insurance agents, accountants, financial planners and lawyers. You should also look over monthly bank statements and credit-card bills. Ask about your husband’s company benefits including bonuses, other “perks”,  company pensions, and other savings  plans, etc. Keep a list of all bank and brokerage accounts and insurance policies.

Don’t lose your Financial Identity
You always want to maintain your own credit identity. Check if your credit cards are in your own name or if you are simply an authorized user as a lack of credit history can work against you.  You should have three bank accounts (his, hers and ours) and maintain separate credit cards.

Keep Your Skills Fresh
While you might welcome the chance to stay home with your kids, the longer you’re out of the work force, the harder it can be to jump back in. Women often face lowball wages or lower job titles when they try to return to work after a long hiatus.

Save for Retirement
Many married women don’t make retirement-saving a priority. If the husband is the primary wage earner, the wife often trusts her spouse to save enough for their collective golden years. A woman spending her retirement savings, (sometime all on legal fees),   is particularly distressing considering that women, on average, live six years longer than men.

Get Financial Guidance
When women are going through a divorce, they need to determine which assets will help them pay their bills and reach their long-term goals. Too many women fight for the home to avoid uprooting their children, only to find that they don’t have the cash flow to pay for it.

Divorce is not only the end of a marriage but it is the breakup of an economic unit. Financial awareness will go a long way to help you feel more in control and better equipped to make reasoned decisions.