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John and Kate Divorced
Nobody gets married to then get divorced, but things change. People change. It’s an unfortunate reality of today’s generation. Recent headlines of reality TV sensations John and Kate Plus 8 and their divorce filings is a sad reminder that it can happen to the best of us. I’ve been fortunate as a financial planner to not have been involved in many ugly divorce cases, and for the few that I have been involved in, that’s more than my share than I want to have. After the divorce is final is where the fun begins.
In an easy divorce, the assets are split down the middle, and for the most part, everybody walks away happy. But in some cases, it gets much more complicated. For example, let’s say that the ex gets the house and some of the stock holdings, and you’re left with the rest. If the overall portfolios were allocated appropriately, the drastic market swings have probably left them completely out of whack. For a financial planner like myself, there’s nothing more troubling than an out of whack portfolio. In a common market, the impact might not be as severe, but it’s no news to anybody that we are not in a common market. After the assets have been split, it’s important that the portfolios be realigned as soon as possible. In addition to that, here’s a few more things that you want to consider.
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